NACS Magazine October 2021 by NACS Magazine

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NACS 2021 | October 5–8 | Chicago

9/15/2021 1:01:44 PM

convenience.org | OCTOBER 2021

CHARACTER RANKING 8/10

345 108 800

GET YOUR GAME ON

Circle K shares successes and strategies around gamified training.

MORNING DAYPART AWAKENS ESG IN FOCUS ALCOHOL SLUSHIES

OCTOBER 2021

42 52 62

74 82 86

head of the Game A Circle K Europe shares its successes and strategies around gamified training. Texas-Size Transition A Kwik Chek’s rebrand to TXB puts a spotlight on food and emerging technology. hallenge or Opportunity? C The investment community’s focus on ESG is creating a groundswell for retailers to establish benchmarks. Reawakening

the Morning Daypart

Convenience retailers lean into breakfast with bean-to-cup coffee, breakfast pizza and French toast flavors. A

New Look at Category Management

Advice from leading category managers on how to stay current in the shifting retail environment.

Protecting Revenue After the EMV Deadline

A Q&A with Invenco.

afe and Secure S Digital safes streamline cash management tasks while enhancing security and accountability.

onvenience Customers 100 Cand Sustainability

The NACS/Coca-Cola Retailing Research Council reveals insights on c-store sustainability practices.

108 Mapping Innovation

Convenience retailers with longer-term tech roadmaps are more likely to focus on customer-facing initiatives.

116

hew on This C Getting the candy subcategory of gum and mints back on track.

122 Women on the Road

A shortage of truck drivers has carriers tapping into a diverse talent pool.

128

From

Concept to Operations

How to make strategic decisions about investing in public EV charging.

or Adults Only F Spiked slushies attract new customers and lift margins.

Cover Art by Beyond Definition STAY CONNECTED WITH NACS

 @nacsonline  facebook.com/nacsonline CONVENIENCE.ORG

 instragram.com/nacs_online  linkedin.com/groups/1776505

OCTOBER 2021 |

OCTOBER 2021

We’ve seen the way the industry is heading with foodservice being an important part of the future.

Customer count was down [during the pandemic], but candy sales rose

P.158

IDEAS 2 GO, P. 32

6 Convenience.org

134 Cool New Products

150 Gas Station Gourmet

12 NACS News 22 Good Work 24 Inside Washington

The DOJ and FTC call for competition in the debit marketplace; NACS remembers former Senator and friend of the industry Mike Enzi.

32 Ideas 2 Go

The Filling Co. Gas and Grub puts the menu first.

36 Ideas 2 Go

How one retailer transformed his local goods shop to a thriving convenience store.

| OCTOBER 2021

St. Regis Travel Center embraces Montana’s wild summer fruit.

152 Global Trends

Congratulations to the 2021 NACS Asian Convenience Retail Award winners.

158 Category Close-Up

Turn treats into sweet sales with thoughtful merchandising, seasonal offers and bulk bags.

168 Back Page PLEASE RECYCLE THIS MAGAZINE The presence of an article in our magazine should not be permitted to constitute an expression of the association’s view. CONVENIENCE.ORG

iStock.com/Floortje

From the Editor

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Leading the way in delivering a truly open system that welcomes third-party integrations for the opportunity to build an ecosystem of providers

NACS 2021 Booth 3938 - South Building - Hall A invenco.com | sales@invenco.com | +1 877 515 0939

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9/14/2021 6:39:40 PMA 9/10/21 11:26

VOLUME 20, ISSUE 10

OCTOBER 2021

convenience.org/hrforum convenience.org/hrforum when registration opens

Sign up to be notified when registration opens Sign up to be notified HR Professionals, join us at the NACS HR HR Professionals, Forum where you’ll join us at the NACS HR network with peers Forum where you’ll facing similar challenges network with peers and learn how others facing similar challenges have developed practical and learn how others solutions to overcome have developed practical challenges. solutions to overcome challenges. Orlando, FL

March 21-23, 2022 Orlando, FL

March 21-23, 2022 March 21-23, 2022 Orlando, FL

March 21-23, 2022 HR Professionals, Orlando, FL join us 21-23, at the 2022 NACS HR March Forum you’ll Orlando,where FL HR Professionals, network with peers join us similar at the NACS HR facing challenges HR Professionals, Forum where and learn howyou’ll others join us at the NACS HR network with peers have developed practical Forum where you’ll facing similar challenges solutions to overcome network with peers and learn how others challenges. facing similar challenges have developed practical and learn how others solutions to overcome have developed practical challenges. solutions to overcome Sign up to be notified challenges. when registration opens convenience.org/hrforum

Sign up to be notified when registration opens Sign up to be notified convenience.org/hrforum when registration opens convenience.org/hrforum

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9/14/2021 6:39:40 PMAM 9/10/21 11:26

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EDITORIAL Kim Stewart Editor-in-Chief (703) 518-4279 kstewart@convenience.org Sara Counihan Contributing Editor (703) 518-4278 scounihan@convenience.org Lauren Brooks Digital Content Manager (703) 518-4283 lbrooks@convenience.org CONTRIBUTING WRITERS Terri Allan, Stephen Bennett, Sarah Hamaker, Al Hebert, Pat Pape, Renee Pas, Jerry Soverinsky DESIGN Beyond Definition www.beyond-definition.com

ADVERTISING

NACS BOARD OF DIRECTORS CHAIR: Kevin Smartt, Kwik Chek Food Stores OFFICERS: Lisa Dell’Alba, Square One Markets Inc.; Brian Hannasch, Alimentation Couche-Tard Inc.; Andy Jones, Sprint Food Stores Inc.; Ken Parent, Pilot Flying J LLC; Victor Paterno, Philippine Seven Corp. dba 7-Eleven Convenience Store; Don Rhoads, The Convenience Group LLC; Jared Scheeler, The Hub Convenience Stores Inc. PAST CHAIRMEN: Frank Gleeson, Aramark Northern Europe; Julie Jackowski, Casey’s General Stores Inc. MEMBERS: Chris Bambury, Bambury Inc.; Chris Coborn, Coborn’s Inc. Little Dukes; Joseph M. DePinto, 7-Eleven Inc.; Bhagdeep S. Dhaliwal, Dhaliwal & Associates Inc.; George Fournier, EG America LLC; Anne Gauthier, St. Romain Oil

Stacey Dodge Advertising Director/Southeast (703) 518-4211 sdodge@convenience.org

NACS SUPPLIER BOARD

Jennifer Nichols Leidich National Advertising Manager/ Northeast (703) 518-4276 jleidich@convenience.org

CHAIRMAN-ELECT: Brent Cotten, The Hershey Company

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

PUBLISHING Erin Pressley Publisher and Vice President, Education & Media (703) 518-4208 epressley@convenience.org Rose Johnson Audience Development and Production Manager (703) 518-4218 rjohnson@convenience.org

CHAIRMAN: Rick Brindle, Mondelēz International

Company LLC; Varish Goyal, Loop Neighborhood Markets; Christine Hogan, Wheels Convenience Stores; William B. Kent, The Kent Companies dba Kent Kwik Convenience Stores; Sydney Kimball, Shell International Petroleum Company Limited; Chuck Maggelet, Maverik Inc.; Ina (Missy) Matthews, Childers Oil Co.; Charles McIlvaine, Coen Markets Inc.; Lonnie McQuirter, 36 Lyn Refuel Station; Glenn M. Plumby, Speedway LLC; Robert Razowsky, Rmarts LLC; Richard Wood, Wawa Inc. SUPPLIER BOARD REPRESENTATIVES: Rick Brindle, Mondelēz International; Brent Cotten, The Hershey Company STAFF LIAISON: Henry Armour, NACS GENERAL COUNSEL: Doug Kantor, NACS

VICE CHAIRMEN: David Charles, Cash Depot; Kevin Farley, GSP; George Ubing, E&J Gallo Winery

Coca-Cola Company; TJ Lynch; Vito Maurici, McLane Company Inc.; Bryan Morrow, PepsiCo Inc.; Sharon Porter, Saputo USA LLC, dba Saputo Convenience; Lesley D. Saitta, Impact 21; John Thomas, iSEE Store Innovations LLC; Dean Zurliene, Monster Beverage Company

PAST CHAIRMEN: Kevin Martello, Keurig Dr Pepper; Brad McGuinness, Qopper Inc.; Drew Mize, PDI

RETAIL BOARD REPRESENTATIVES: Steve Loehr, Kwik Trip Inc.; Chuck Maggelet, Maverik Inc.

MEMBERS: Blake Benefiel, Altria Group Distribution Company; Alicia Cleary, Anheuser-Busch InBev; Tony Gaines, NVIP LLC; Mike Gilroy, Mars Wrigley; Josh Halpern, FIFCO USA; David Jeffco, Krispy Krunchy Foods LLC; Tim Knight; Kevin M. LeMoyne,

STAFF LIAISON: Bob Hughes, NACS SUPPLIER BOARD NOMINATING CHAIRMAN: Joseph Vonder Haar, iSEE Store Innovations LLC

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 employees of nonmember companies at a rate of $70 per year. Please add $15 for delivery outside the United States. Subscription requests: nacsmagazine@convenience.org POSTMASTER: Send address changes to NACS Magazine, 1600 Duke Street, Alexandria, VA, 22314-2792 USA. Contents © 2021 by the National Association of Convenience Stores. Periodicals postage paid at Alexandria VA and additional mailing offices.

1600 Duke Street, Alexandria, VA, 22314-2792

CONVENIENCE.ORG

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

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

500+ member farmers throughout the Southeast

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

All products made in USA & 100% guaranteed

Robust Partnerships

A Cut Above the Rest

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

Premier products use only top-end tobacco blends.

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

• Partners with top national and regional retail chains

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

Your Trusted Premier Brands Choose the brand that suits your loyal consumers. Each brand features a variety of styles to satisfy every taste. Contact PremierManufacturing today! www.gopremier.com/contact

CONVENIENCE.ORG

WHAT’S ONLINE | SEPTEMBER 2021

Training at Your Pace Did you know that NACS offers a library of free webinars? These online education and training programs are hosted by industry experts to keep you up-to-date on legislative issues, category management, human resources, technology and other pivotal convenience industry topics. NACS brings the learning to you in an engaging format designed so you can learn at your own pace. Here’s what NACS has to offer:

Empowering the past, present and future of convenience.

We’ve done it for the past 60 years—and we’re just getting started. We’ve helped convenience and fuel retailers from around the world stay competitive and profitable today, while preparing for tomorrow. Renew your membership today, and let NACS help you navigate disruption and future proof your business with access to new resources, products and technologies, exclusive inperson and virtual events, and one-of-a-kind opportunities to make lasting connections.

Renew your membership today. convenience.org/renew

NACS Hot Topics: From hiring challenges to category management training, and menu labeling regulations to strategies for navigating the future workforce, these webinars dive into topics that are most pressing to convenience retailers. Cool New Products: Be the first to identify new products and get them on your store shelves. The newest category trends and hottest items to hit c-store shelves are available at your fingertips! In just 20 minutes, catch up on all the latest industry trends in our easy-to-digest on-demand webinars. Supplier Webcasts: These webcasts offer our supplier partners a way to deliver their research and best practices in a personable and face-to-face environment. Hear from the experts on how they can help you grow and become more profitable. Watch today at www.convenience.org/webinars.

The It List

NACS Cool New Products aren’t just available at NACS events. With 30,000 new products entering the market each year, and with innovation making up to 20% of a convenience store’s set, new products are critical to success. In the NACS Cool New Products Discovery Center, NACS helps you find new packaging solutions, merchandising displays, technology, product designs, exciting new flavors and more. We have several year-round ways for you to discover what’s new—and cool—in the convenience channel. You can access the hottest new products available to convenience stores right now at www.convenience.org/coolnewproducts. CONVENIENCE.ORG

iStock.com/blackCAT

Your Industry Champion for 60 Years

More than

250 Family Members Over

120 Service Techs.

Visit us at the 2021 NACS Show booth #4602

Learn more: www.cdlatm.com l 800.776.8834 sales@cdlatm.com

FROM THE EDITOR

From the b ee decor, 93 O r names to the c t ane e m gas station braces its ro o ts .

lA hand-pressed al At Urban Counter: d an n co ep-fried ba beef burger with de n pretzel bu cheese curds on a

93 Octane Delicious craf t: ican Sour ale Brewer y's Amer rl Gray tea flavored with Ea

The Windy City

Kim Stewart Editor-In-Chief

I was shocked to discover the best craft beer on tap—and made on site— that I’d ever had outside of Belgium. 8

| OCTOBER 2021

he first time I visited Chicago was in the early ‘90s with my then boyfriend—whom I’d soon marry—during a long layover on an Amtrak trip we’d taken from Virginia to Whitefish, Montana, where I learned to ski. It was midDecember, and we had the wild idea to hike over to Grant Park to see Lake Michigan. As the wind whipped across the water, this shuddering Virginia girl decided she’d had enough of the cold. My second dance with Chicago was early in my career for the Adobe Summit, when companies were trying to figure out this thing called the World Wide Web, and a colleague and I used to hunker down in a chilly server room and “hand code” html without the benefit of a WYSIWYG web editor on the one server that hosted our organization’s simple website. We dined at Lawry’s The Prime Rib (sadly, it closed last year) on Ontario Street and visited Billy Goat Tavern on Lower Wacker Drive because we were huge fans of the “Olympia Tavern” Saturday Night Live skit with John Belushi, Bill Murray and Dan Akroyd. Cheezborger! On later trips, I got to do all of the touristy things—and had not so touristy experiences like getting caught in a flash flood in a rental car. Just this past

summer I had the pleasure of visiting Chicagoland and The PRIDE of St. Charles, where Mario Spina, owner and CEO of The PRIDE stores and Parent Petroleum, and his team warmly welcomed the NACS Ideas 2 Go crew. Adjacent to the convenience store sits Spina’s Urban Counter restaurant, a spirits store (which features a mindblowing selection of beer, wine and liquor) and 93 Octane Brewery. There, I was shocked to discover the best craft beer on tap—and made on site—that I’d ever had outside of Belgium. That day I sampled the American Sour ale flavored with Earl Gray tea (win!) and the sour ale flavored with blackberries and habanero peppers. Amazing! If you are ever near Geneva, Illinois, this is a must stop. The upshot of this is to say that I’ve always loved Chicago, and I am thrilled to return to the city for the 2021 NACS Show, October 5 to 8. It’s been way too long since our industry came together, face to face, to see what’s new and what’s possible—and what’s next. Cheers, my friends!

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NACS NEWS

n case you missed it, early this summer NACS released TruAgeTM—a groundbreaking digital identification solution that enhances current age-verification systems at all retail points of sale while still protecting user privacy. TruAgeTM works by verifying a person’s age, not their identity. A buyer presents their driver’s license, which is scanned, and the TruAgeTM system creates an encrypted, single-use identity token in the cloud that verifies the purchaser’s age, date of birth and driver’s license issuer state, and that information goes into the store’s T-log. The first transaction will take about 15 seconds longer than normal, but after that, the age-verification process is seamless and

| OCTOBER 2021

customers won’t have to show their driver’s licenses again, just the app. TruAgeTM also can help retailers prove that they are responsible sellers of age-restricted products. The customer token, if subpoenaed by a court or regulatory action, can help retailers prove that they aren’t selling to underage purchasers, who might have been involved in an actionable event. The solution is already supported by more than 130 retail companies that represent 22,000-plus convenience store locations in the United States, plus four industry point-of-sale providers. Learn more about the TruAgeTM program and opportunities to participate at www.convenience.org/TruAge. CONVENIENCE.ORG

iStock.com/SHIROKUMA DESIGN

The New Age of Verification

We are Coca-Cola and so much more, offering the preferred categories and leading brands to drive your sales and profit growth. Contact your Coca-Cola representative, call 1-800-241-COKE, or visit www.coca-colacompany.com/brands Visit Booth 1617 at the NACS Show

NACS NEWS

Weekly Fuel Price Data

NACS Hires Digital Marketing Director

Fuels Market News, a NACS publication, is now offering OPIS fuel price data each week in its newsletters through a special arrangement with OPIS. The data are regional, encompass both retail and rack, and cover gasoline (all grades), ULSD, E85 and DEF. This provides retailers and distributors with useful benchmarking metrics to help evaluate their operations. Accessing the data is as simple as subscribing to the Fuels Market News newsletters at www.fuelsmarketnews.com/ subscribe-fmn. You’ll also receive the latest fuels news and weekly feature content.

Thomas (TJ) Velasco joined NACS as its digital marketing director. Velasco brings more than 14 years of digital strategy experience to the table, having worked in both agency and in-house settings for organizations like Targeted Victory, the Military Officers Association of America, AARP and Pepsi. Thomas Velasco

Keep Up With the Industry The pace of industry change continues to happen at a fast clip, and it can be tough to keep up. One way to stay on top of the evolution is to have the right data at your fingertips. The NACS State of the Industry Enterprise is the convenience and fuel retailing industry’s leading research entity. By engaging with convenience retailers throughout the United States, NACS Research collects, aggregates, presents and provides commentary on operational and financial industry metrics and trends. The NACS State of the Industry Report is the industry’s premier benchmarking tool and the most comprehensive collection of data and trends. This report helps c-store retailers understand the big picture with data and analysis on economic, market and shopper dynamics. It also can help maximize the effectiveness and profitability of your business with insider access to

| OCTOBER 2021

aggregate financial, operational and category data from more than 27,000 convenience stores across the United States. Importantly, the report allows you to benchmark against top performers in the industry and determine key drivers to their success. The NACS State of the Industry Compensation Report ensures that you not only hire the right person for your team but also attract top talent and retain star employees. This report provides critical benchmarking data and up-to-date standards in the key human resource categories of compensation, turnover, benefits and recruitment. It also breaks down the newest available numbers in the convenience industry and is considered an essential guide for HR professionals. To order these reports and learn more about NACS research opportunities, visit www.convenience.org/research. CONVENIENCE.ORG

More than ever, your customers are looking for something real. Swisher Sweets Leaf natural leaf, rough cut cigars offer a perfectly imperfect choice that is sure to satisfy. Stock the full assortment today and discover the next level in fast turns and quick proﬁts. Please contact your Swisher Representative, call 800.874.9720 or visit swisher.com

NACS NEWS

NEW NACS MEMBERS NACS welcomes the following companies that joined the association between July 16 and August 15, 2021. NACS membership is company-wide so we encourage employees of member companies to create a username by visiting www.convenience.org/ Create-Login. All members receive access to the NACS Online Membership directory, latest industry news, information and resources. For more information about NACS membership, call (703) 684-3600.

NEW RETAIL MEMBERS

NEW SUPPLIER MEMBERS

Cedar Petroleum Inc. dba Stop-N-Shop Minneapolis, MN

Acrelec Pittsburgh, PA www.acrelec.com

Ejn Fuels LLC Escondido, CA

Anything Possible Brands Springfield, MO

Enterprise Rancheria Development dba Rocktane Gas + Smoke Wheatland, CA www.hardrockhotelsacramento.com/ coming-soon Farmers Union Oil Company - Beulah Beulah, ND GTS Enterprises dba Signals Salamanca, NY www.knowyoursignals.com Junction Station LLC Albany, KY Sioux Valley Coop Watertown, SD

Ascent Hospitality Management dba Perkins Restaurant & Bakery and Huddle House Sandy Springs, GA www.ascenthm.com ATM Unlimited Inc. Davie, FL www.atmunlimited.net Bard Valley Date Growers Yuma, AZ www.naturaldelights.com

TCRG Fuels Fort Worth, TX Urban Value Corner Store Plano, TX www.urbanvaluestore.com Zana K LLC Kinder, LA

NEW SUPPLIER MEMBER – HUNTER CLUB BRONZE Techniche Americas LLC Carlsbad, CA www.technichegroup.com

Apax USA Inc. dba Feel Good Superfoods Castle Rock, CO www.feelgoodsuperfoods.com

| OCTOBER 2021

Blink Charging Miami Beach, FL www.blinkcharging.com BRIK Charger Miami Beach, FL www.brikcharger.com Bumble Bee Seafoods San Diego, CA www.bumblebee.com Calyfx Costa Mesa, CA CbdMD Inc. Charlotte, NC www.cbdmd.com CoinMover Lynn, MA www.coinmover.com Colorado Jack Popcorn Leeds, ND www.coloradojackpopcorn.com Crazy Go Nuts Fresno, CA www.cgnwalnuts.com

Bareun Co. Ltd. dba Co-Foods LLC Gwangwon-do, South Korea

CSM Sales Brighton, MI

Belles Popcorn Addison, TX www.bellespopcorn.com

Curation Foods Santa Maria, CA www.curationfoods.com

Beyond Meat El Segundo, CA www.beyondmeat.com

Cypresswood Shevron Spring, TX

Bitstop Cutler Bay, FL www.bitstop.co

Eagle Protect PBC South Lake Tahoe, CA www.eagleprotect.com

Ecotrak Facility Management Software Irvine, CA www.ecotrak.com Eternal Smoke Orlando, FL www.eternalsmoke.com EY-Parthenon Chicago, IL FC Snacks Inc. Hialeah, FL www.fcsnacks.com Genki Forest America Inc. Wilmington, DE www.drinkgenki.com George's Inc. Springdale, AR www.georgesinc.com Glass-Media Inc. Dallas, TX www.glass-media.com Greenberrys Coffee Roasters Charlottesville, VA www.greenberrys.com Hhemp Haward, CA www.hhemp.co Jensen Equipment Pewaukee, WI www.jensenequipment.com Joos Energy USA LLC Austin, TX www.joosenergy.com

CONVENIENCE.ORG

VISIT

NACS SUS AT BOOTH HOW 2110

Snoop Dogg and Martha Stewart agree that the BIC® EZ Reach™ lighter truly is the ideal lighter for all lighting occasions. EZ Reach is pocket-sized for convenience. Its 1.45-inch wand is designed for lighting hard-to-reach places while helping to keep fingers away from the flame. BIC EZ Reach, The Ultimate Lighter.

* *Information Resources, INC. C-MULO 52 weeks as of 27-JUN-21

NACS NEWS

NEW NACS MEMBERS

(Continued)

JRS Hospitality/BCIP dba Big Chicken Las Vegas, NV

NotCo New York, NY www.notco.com

Picafuel Tel Aviv, Israel www.picafuel.com

SMSB Consulting Group Inc. Hauppauge, NY

Manzela USA LLC Mcallen, TX www.manzela.us

NTP Imports LLC Miami, FL www.usaserenata.com

Principal LED LLC San Angelo, TX www.p-led.com

Miele Manufacturing Williamsport, PA www.mielemfg.com

Our Savorite Fine Foods LLC Pinecrest, FL www.oursavorite.com

Ripe Vapes Inc. Camarillo, CA www.ripevapes.com

Stryder Eyewear dba Forceflex Eyewear Miami Beach, FL www.forceflexeyewear.com

Mpact Beverage Company Cypress, TX www.mpactbeverage.com

Peoples Bank Richland, MS www.peoplesbank-ms.com

Saint James Brands LLC Boca Raton, FL www.saintjamesbrands.com

Upside Innovations Andrews, SC www.upsideinnovations.com

MYND Drinks International Chicago, IL www.mynddrinks.com

Pepper New York, NY www.usepepper.com

Shottys New Port Richey, FL www.shottys.com

Snapdragon San Leandro, CA www.snapdragonfood.com

MEMBER NEWS RETAILER Brandon Hofmann has been named president of Parker’s Kitchen, and Brian Prevatt is now president of Parker’s Support. Previously the chief operating officer at Parker’s, Hofmann will oversee store operations, foodservice, fuel, maintenance and marketing in his new role at Parker’s Kitchen. In his role as the president of Parker’s Support, Prevatt will manage finance, financial planning, legal, compliance, human resources, technology, innovation, procurement and loss prevention. SUPPLIER Compliance Safe announced the addition of Tim Haley as director of new business development. Haley will lead the growth of its Compliance Safe software solution in the convenience, grocery and foodservice retail channels.

| OCTOBER 2021

Tim Haley

ASSOCIATION Independent Energy and Convenience announced that Thomas Palace, the association’s longtime executive director, will retire effective December 31, 2021. Current Associate Executive Director Becky Schwartz will take the helm upon his retirement. KUDOS Parker’s has been included on the Inc. 5000 list of the fastest-growing private companies in America for the sixth time. The Inc. 5000 list Parker’s is based in Savannah, Georgia. recognizes the top 0.07% of all private companies in the U.S. in terms of growth.

CONVENIENCE.ORG

NACS NEWS

BY THE NUMBERS

Spice It Up Flavor rotations throughout the year are a key aspect of the category manager’s role in a c-store. Determining what flavors to highlight can be partially determined by the changing weather conditions, and one of the most popular flavors in recent years, pumpkin spice, typically shows up along with long sleeves, tall boots and crisp air. But not all pumpkin products sell equally. NielsenIQ data show pumpkin spice sales, unsurprisingly, peak in the fall through the winter— the inverse of convenience sales, which typically increase during the peak travel months in summer. The top three most popular categories for pumpkin spice sales are edible grocery, packaged beverages and fluid milk products. These items include seasonal coffee, eggnog, milk and creamers. TOP 3 CATEGORIES FOR PUMPKIN SPICE SALES IN C-STORES BY MONTH Edible Grocery

Fluid Milk Products

Packaged Beverages

TOP 10 PUMPKIN SPICE PRODUCTS IN 2020 BY SALES

1. Flavored Ground Coffee 2. Flavored Ground Coffee (single capsule) 3. Eggnog 4. Milk 5. Muffins 6. Coffee Creamer 7. Liquid Iced Coffee 8. Vodka 9. Flavored Liquid Coffee 10. Beer Source: NielsenIQ total U.S. convenience 2020 sales, week ended January 2, 2021

$350,000 $300,000 $250,000 $200,000

$100,000 $50,000 0

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul 18 18 18 18 18 18 19 19 19 19 19 19 20 20 20 20 20 20 21 21 21 21

Source: NielsenIQ total U.S. convenience monthly sales, January 2018-July 2021

| OCTOBER 2021

CONVENIENCE.ORG

iStock.com/Regina Tolgyesi

$150,000

The Winston Rewards Program is open only to legal residents of the 50 U.S. and DC who are smokers 21 years of age or older and have a registered account at winstoncigarettes.com (the “Website”). Visit the Website (https://winstoncigarettes.com/rewards/) to create a free account and for full terms and conditions. Rewards only available while supplies last. Void where prohibited by law. Not all Program offerings will be available to all participants and some may be subject to additional terms. Program may be changed. Winston® is a registered trademark of ITG Brands, LLC. ©2021 ITG Brands, LLC

VISIT US AT THE 2021 NACS SHOW

BOOTH #1739

FOR TRADE PURPOSES ONLY

GOOD WORK

Give Back by Pumping Gas

The PRIDE stores in Illinois support the Living Well Cancer Resource Center by donating a portion of every gallon of gasoline sold at designated fuel pumps to the Geneva, Illinois, nonprofit.

C BY THE NUMBERS

$4.3 Million

Funds raised for the Boys and Girls Club by Shell wholesalers

$1.1 Million

Funds raised for the Leukemia and Lymphoma Society via Shell Force for Good initiatives

| OCTOBER 2021

all them Spirit Pumps or Giving Pumps, the idea behind using specially designated gas pumps is to give consumers and the gas stations they patronize an easy way to support local charities with each fill-up and raise awareness about good works in their communities. Recently at The PRIDE of St. Charles in Illinois, customers could be seen picking the pump with the Living Well Cancer Resource Center pump topper indicating that a portion of the proceeds for the pump would benefit the Geneva, Illinois, nonprofit, which is part of NM Northwestern Medicine. The pump is wrapped in signage explaining the center’s programs. At this Lincoln Highway location, the spirit pump launched in July and runs for three months.

“A portion of every gallon of gas we sell goes toward the Living Well Foundation,” said Mario Spina, owner and CEO, of The PRIDE stores and Parent Petroleum. The pump not only supports Living Well, Spina said, but also raises awareness of the charity, which is just one of many that The PRIDE supports throughout the Chicagoland area each year. C-stores like The PRIDE set a centsper-gallon target for a pump on-site and pay for the fuel dispenser to be specially wrapped to signal the fundraiser. Pump toppers and other signs are usually included to catch drivers’ attention and raise awareness of the charity. In Baraboo, Wisconsin, Pierce’s Express Market designates two fuel pumps as Baraboo Thunderbirds spirit pumps, where CONVENIENCE.ORG

two cents of every gallon sold will go to a different school program each month. “The idea of allowing customers to choose the designated pumps and support our local school’s bottom line is a win-win situation,” Brian Pierce, the c-store’s owner, said on the store’s webpage outlining the program. “We believe a strong commitment to the community is vital to create a place we all can be proud of. It is our way to give back to the community.” Pierce Express Market’s program is part of the bp “fueling communities” initiative. Citgo has a Spirit Pump program for participating stations interested in supporting local schools and other charities, while Shell in August launched The Giving Pump initiative at nearly 3,000 participating gas stations in 45 U.S. states to support children’s charities in local communities through September 30. In Grand Traverse County, Michigan, TrueNorth convenience stores are participating in The Giving Pump as part of Shell’s Force for Good fundraiser. A portion of the purchases made at the designated pump will support either local school districts or the Boys & Girls Club of America. In Cincinnati, Ohio, Saint Ignatius of Loyola Church posted to Facebook with a call to support the church by filling up on gasoline at the Triumph Energy Shell station across the street. Since launching Force For Good, Shell has highlighted the impact Shell wholesalers have in the communities in which they operate, going beyond fuel quality and loyalty. Shell wholesalers have continued to be a Force For Good in local communities through initiatives like raising $1.1

In Cincinnati, Ohio, motorists can pick The Giving Pump that benefits Saint Ignatius of Loyola Church, located across the street from the Triumph Energy Shell station.

million for the Leukemia and Lymphoma Society, raising $4.3 million for Boys and Girls Club of Kennewick and more. On Long Island, New York, GIVNGO supports local nonprofits through the Give and Go program. For every gallon pumped at a participating station, a portion of the proceeds go to support the PinkTie 1000 Foundation, which distributes needed funds to local charities each quarter. “If more people realized that giving back would not only grow their business but also make them feel good because of the positive impact they are making in their community, I think the world would be a better place. This is a remarkable opportunity for people to give back and support local charities,” said Mike Cave, founder of PinkTie.org and PinkTie 1000.

IN THE COMMUNITY The GATE Foundation, the philanthropic arm of Jacksonville-based GATE Petroleum Company, and GATE customers raised $45,000 for Ronald McDonald House (RMH) Charities. Funds were raised January 1 – June 30 as part of GATE’s coin box campaign and charity round-up option.

CONVENIENCE.ORG

“Ronald McDonald House Charities provide a safe haven and home away from home for families with children facing serious medical issues. It is an honor to support their work,” said Kathy Brady, executive director of the GATE Foundation.

Pictured L to R: Ashley Strickland, marketing manager of RMHC Jacksonville, and Carol Harrison, development director of RMHC Jacksonville.

OCTOBER 2021 |

INSIDE WASHINGTON

Fair Game

DOJ and FTC call for competition in debit marketplace.

W FACTS & FIGURES

900

Number of public comments the Federal Reserve Board received on its clarification proposal on the Durbin Amendment.

2010

Year the Durbin Amendment was signed into law to ensure competition in the debit market.

| OCTOBER 2021

hen it comes to debit routing, retailers should have two choices of networks for processing the transaction. The Durbin Amendment, signed into law in 2010, ensured competition in the debit market by requiring issuing banks to enable two unaffiliated networks on debit cards. However, on card-notpresent transactions (internet, mobile app, wallet and even contactless), banks have only been enabling the global network—Visa or Mastercard. NACS views this as a clear violation of the law and has met with the Federal Reserve Board, the Department of Justice (DOJ) and the Federal Trade Commission (FTC) about the

anti-competitive practices of the global networks and their issuing banks. This spring, the Federal Reserve Board proposed a clarification to the debit rule stating that issuing banks must enable two networks on card-notpresent transactions as technologies have evolved over time. NACS supported this clarification and filed comments on behalf of the industry urging the Fed to finalize it as swiftly as possible. NACS also called on the agency to ensure a retailers’ routing choice is protected regardless of the type of authentication method—PIN or PIN-less—as this has been another way that the smaller debit networks have been shut out of the market. From NACS’ perspective, a retailer’s routing rights should be CONVENIENCE.ORG

iStock.com/jacoblund

BY PAIGE ANDERSON

Now G Storewoes i d e!

The ART OF Merchandising

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Yeah, We’ve Got That

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Containers Well Contained

Cooler Capable AMT

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Zip Track EndlessMerchandiser Baskets

Endless Baskets

each track together. ZIP Track® offers

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Extend Your Revenue Super Hooks! E x t e n d Y o u®r R e v e n u e

Pegboard Extenders WonderBar Hooks Pegboard Extenders

Extend your opportunities to WonderBar® Displays are the versatile increase revenue with Trion’s Extend your opportunities to heroes of the Trion product family, pegboard Use E x t e n dextenders. Y o u r Rwith e v ethem n u e to increase revenue coming to the rescue when youTrion’s need E display x t e nextenders. d surfaces Y o u r Rsoe vyou e n u eto layer pegboard themcan muscle and good looks to Use merchandise simultaneously show tall and layer of display surfaces youshort can items all sizes. Barso Hooks can Extend your These opportunities to items. Commonly used to merchandise simultaneously show tall and short lift heavy loads in their capable arms. Extend your opportunities to increase revenue with tools Trion’s mops, brooms, long handled and items. Commonly used to merchandise Display or Scan, Saddle Mount or Trion’s Plug increase revenue with pegboard extenders. Use them to more, with cross sells and accessories mops, brooms, long handled tools and in,pegboard there are Trion WonderBar Hooks extenders. Use them layer display surfaces so you canto directly in front. Pegboard extenders more, with cross sells and accessories for everydisplay need. show layer surfaces so you can simultaneously tall and short extend your merchandising reach. directly in front. Pegboard extenders simultaneously show and short items. Commonly used to tall merchandise extend your merchandising reach. items. Commonly to merchandise mops, brooms, longused handled tools and mops, brooms, long and handled tools and more, with cross sells accessories more, with cross sells and extenders accessories directly in front. Pegboard directly in merchandising front. Pegboard extenders extend your reach.

Pegboard Extenders Pegboard Extenders

extend your merchandising reach.

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T R HE OF ME T H H E E A A R R T T O O FF M M EERCHANDISING R C C H H A A N N D D II S S II N N G G TE H H E E A TR R T TO O O F FMM M ER R RC C CHH H AA A NN ND D III S S II N N G HT A RA F EE N G G D S Create Your Own Merchandising Masterpiece Your Masterpiece with Trion Create YourOwn Own Merchandising Masterpiece with Trion Fixtures T H E A Create R T OMerchandising F M E R C with H Trion A Fixtures NFixtures D I S I N G

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Extruded Sign Extruded C o l d FSriog n t UFpo!Holders rHolders ecast nSign S i g n U p ! S i g n U p ! Check the benefits of our promotional Checkout out the benefits of our promotional AirandFlow Baffle Extruded Signwant Holders products, to products, and you’ll you’ll want to sign sign up! up! Extruded Sign Holders Extruded Sign Holders The forecast is a cold of cooler front when Check out the ourmulti-purpose promotional Extruded sign holders Extruded signbenefits holders are are multi-purpose

you useout Trion’s Air insign coolers. ck out products, the benefits ourFlow promotional Check theof benefits ofBaffle ourto promotional and you’ll want up! to fixture needs. Use plastic to fit fit your your fixture needs. Use plastic Product temperature can beto difficult to products, and you’ll want sign up! sign holders are multi-purpose ducts, Extruded and you’ll want to sign up! pushbuttons to attach signs to pegboard. pushbuttons to attach signs to pegboard. maintain at the front of a cooler. This Extruded sign holders are multi-purpose to fitholders your fixture needs. to Use plastic TM uded sign areTM multi-purpose Use FISH Tip hooks Use FISH Tip hooks to position position Air Flow Baffle ensures that cold air is to fit your fixture needs. plastic pushbuttons to attach signs toUse pegboard. it your fixture needs. Use plastic outboard on pegboard, slatwall and outboard on pegboard, slatwall andmore. more. forced forward to hooks keep items at their TM pushbuttons to attach signs to pegboard. Use FISH Tip to position These sign holders make it easy to define hbuttons to attach signs to pegboard. These sign holders make it easy to define ideal temperature. Use as part ofmore. your Use FISH Tip TM update hooks to and position on pegboard, slatwall product categories price specials, product categories update price specials, FISHoutboard Tip TMoutfitting hooks strategy, to position cooler along with outboard on pegboard, slatwall and more. These sign holders make it easy to define highlight product features, and highlight product features, and offer offer board on pegboard, and more. ® slatwall WonderBar Bar Merchandisers and These sign holders make it price easy Extruded to define product categories update specials, special to your customers. specialdeals deals to your customers. Extruded TM se signhooks, holders make it easy to define EWT Expandable Wire Tray product categories update price specials, highlight product features, and offer sign are in heights and sign holders holders are offered offered in 44Clear heights and ® duct categories update price specials, System, and cooler capable Scan highlight product features, and offer special to your customers. Extruded almost any Staggered rear mounts almostdeals anylength. length. Staggered rear mounts hlight sign product features, and offer label holders. special dealsare to your customers. Extruded holders offered in 4 heights and allow positioning at heights. allow positioning at 44 different different heights. cial deals to800-444-4665 your Extruded Call | TrionOnline.com sign holders are offered in 4 rear heights and almost any customers. length. Staggered mounts Call 800-444-4665 || TrionOnline.com Call 800-444-4665 TrionOnline.com holders arepositioning offered inat4Staggered almost any length. rear mounts allow 4heights differentand heights. ost anyCall length. Staggered rear mounts allow positioning at 4 different heights. 800-444-4665 | TrionOnline.com w positioning at 4 different| heights. Call 800-444-4665 TrionOnline.com

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ScanLock ScanLock Hook Hook Locks Locks Cooler Capable AMT ScanLock Hook Locks team for when Scanlock team for aa long long lunch lunch when Scanlock ScanLock Hook Locks Neatly and effectively display cooler Thief! Send lossjob. prevention V e Stop! rScan d i cHook t: G u i lare tyour yon ! the Locks The Scan Hook Locks are on the job. Thegreat great ®®

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® and freezer items, including yogurt, Stop! Thief! Send your loss prevention team long Scanlock ® aaasteal price is in itself, but let price for is steal inlunch itself,when but don’t don’t let the the ® dips, puddings, ice cream, single-serve team for a long lunch when Scanlock Scan Hook Locks are on the job. The great deal deal fool fool you. you. These These locks locks secure secure most most foods, and more. Our small Adjustable Scan Hook Locks are on the job. The great price is a your steal itself, but let the p! Thief! Send loss prevention common scan hooks and can common scanin hooks anddon’t can retrofit retrofit Merchandising Tray (AMT) fits a range price is lunch ahooks. stealThese inChoose itself, but don’t the fool you. locks secure most ® let existing your preferred m for adeal long when Scanlock existing hooks. Choose your preferred of 4- fool to 6-ounce cups;locks the medium AMT deal you. These secure most common scan hooks and can retrofit lock-up: the locks alone lock-up: purchase the locks alone or or n Hookorganizes Locks arepurchase on the job. The great mid-range offerings; and the common scan hooks and can retrofit existing hooks. Choose your preferred choose full lock-and-hook combinations. choose full lock-and-hook combinations. e is a steal in itself, but don’t let the large AMT gives Choose ice the cream lovers pause existing hooks. your preferred lock-up: purchase locks alone or Open hooks when customers request, Open hooks whensecure customers request, fool you. These locks mostof to browse and choose a pint their lock-up: purchase the locks alone or choose full lock-and-hook combinations. then items and re-lock without then replace replace itemscan and re-lock without mmon scan hooks and retrofit favorite flavor (hmmm ...why not get both choose full for lock-and-hook combinations. Open hooks when customers request, the need the key. Even the lock the need for and the Rocky key. Even the This lock Cherry Vanilla Road?). ting hooks. Choose your preferred Open hooks when customers request, then items re-lock without itself is as ititand stays in while itselfreplace is secure, secure, asensures stays in place place while manual-feed tray that products -up: purchase the locks alone or then replace items and re-lock without the need for the key. Even the lock items are accessed by These locks items are accessed by staff. staff. These remain faced andcombinations. accessible. Timelocks to ose fullitself lock-and-hook the need for theit key. Even thewhile lock is secure, as stays in place have been rightly accused of protecting have been rightly accused of Add protecting re-stock? Just lift out and refill. Clear itself is secure, as it stays in place while en hooks when customers request, items are accessed by staff. These locks merchandise of while merchandise of all all types types while protecting protecting ® Scan Label Holder, and you’re finished! items are accessed by staff. locks have been rightly accused ofThese protecting n replace items and re-lock without your profits. Verdict: guilty! your profits. Verdict: guilty! Call 800-444-4665 | TrionOnline.com have beenkey. rightly accused of protecting of all types while protecting need merchandise for the Even the lock Call || TrionOnline.com Call 800-444-4665 800-444-4665 TrionOnline.com merchandise of allintypes while protecting your profits. Verdict: guilty! f is secure, as it stays place while your profits. Verdict: guilty! Call 800-444-4665 | TrionOnline.com

canLock Hook Locks

ms are accessed by staff. These locks Call 800-444-4665 TrionOnline.com e been©2019 rightly accused of |protecting ©2019 Trion Industries, Inc. ©2019 Trion Industries, Inc. Inc. Trion Industries, Trion Industries, Inc. ©2021 chandise of all types while protecting ©2019 Trion Industries, Inc. r profits. Verdict: guilty!

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heroes of the Trion product family, Slat or flat! Trion slatgrid or flatgrid scan Industries hooksflatback formakes that.metal, Flip or styles. Choose or styles. Choose from flatback metal, or coming to thefrom rescue when you need or flatgrid scan hooks for that. Flip or clip, you get your choice of label holder open wire backplates prong, open wire backplates in single prong, muscle and good looksin tosingle merchandise clip, you get your choice of label holder styles. Choose from flatback metal, or Slat oritems flat! Trion Industries makes slatgrid loop, or scan fronts. You then have of allhook sizes. These Bar can loop, or scan hook fronts. YouHooks then have styles. Choose from flatback metal, or open wire backplates in single prong, or aaflatgrid scan hooks for that. or choice of label holder styles. The entire lift heavy loads in their capable arms. choice of label holder styles. TheFlip entire open wire backplates in single prong, loop, or scan hook fronts. You then have ", range of 11 or 3" and 4" surfaces are Display Scan, Saddle Mount Plug ",your clip, you get choice of labelorholder range of 3" and 4" grid grid surfaces are loop, or scan hook fronts. YouThe then have asupported. choice of label holder styles. entire IfIf slatwire or gridwall is your in,Choose there are Trion WonderBar Hooks supported. slatwire or gridwall is your styles. from flatback metal, or a choice of label holder styles. The entire ", range of 1 3" and 4" grid surfaces are for every need. display surface, your hook choice should display surface, your hook choice should open wire backplates in single prong, range of 1 ",If 3" and 4"orgrid surfaces are supported. slatwire gridwall is your be be Trion. Trion. loop, or scan hook fronts. You then have supported. If slatwire or gridwall is your display surface, your hook choice should a choice of label holder styles. The entire display be Trion.surface, your hook choice should range of be Trion.1 ", 3 " and 4 " grid surfaces are

Scan Hooks for Grid

supported. If slatwire or gridwall is your display surface, your hook choice should be Trion.

HOOKS lAbElING SHElF COOlER HOOKS|||lAbElING lAbElING|||SHElF SHElF&&&COOlER COOlER HOOKS MERCHANDISING MERCHANDISING MERCHANDISING 800-444-4665 info@triononline.com 800-444-4665|||info@triononline.com info@triononline.com 800-444-4665 HOOKS.triononline.com/Art | lAbElING | SHElF & COOlER .triononline.com/Art .triononline.com/Art MERCHANDISING HOOKS | lAbElING | SHElF & COOlER 800-444-4665MERCHANDISING | info@triononline.com .triononline.com/Art 800-444-4665 | info@triononline.com

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For the Bulky Stuff Oversize? No Problem!

AirDual FlowLane Baffle Mini Trays Sforecast t a g i n isg aAcold r e acooler s B ufront i l t when In The This mini tray leads to maximum revenue, you Trion’s Air FlowBeverage Baffle Hooks in coolers. Foruse Grab-and-Go Sales Pin-Stop Waterfall because it allows complimentary items to

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Zip Track Beverage System

great, wait till you meet itsneatly big brother! them and using Mirror,attractively mirror on the wall. You can be Oversized just like some of your front fencing and dividers to display customize the most difficult item to of products, this weightlifter stays strong the and create all. display Clever space merchandisers useunique large on both metalofand open shelves presentations similar or wire related items. literature holders for three-dimensional, and bar. One-piece installation means This cross-selling approach makes awkwardly sized items like mirrors, you can drop this right into shopping easier forbad theboy customer and framed art, clocks, and more. Available place, adjust as needed, and watch more profitable you. Select from in a range of sizes,for gauges, and weights, the revenue Theoutfitting EWT takes aTrion’s range of increase. other Trion to large literature holders can be over from there, automatically feeding maximize selling space from the base spaced horizontally to accommodate all product to the front and billboarding deck to the top shelf and beyond. ® manner of product sizes. merchandise for maximum visibility.

® Product temperature can be difficult be featured together.downward-canted Dual lanes adjustto to These strong, maintain at the front of a cooler. This fit narrow hooks merchandise sizes as small as waterfall lift more weights than Merchandise allensures size drinks fromair mini Air Flow Baffle is 1a3⁄personal features a that separate pusher 4 ". Each lane Ready for cold a workout, ® trainer. ® Red Bull cans to oversized Gatorade forced forward to keep items at their paddle to keep products and Trion Industries’ hooks forwarded display heavy ® bottles. ZIP Track is the most versatile ideal temperature. Use part your faced. Feature items of as different widths products, like free weights in of multiple and cost-effective Grab-and-Go system cooler outfitting strategy, along with via asymmetric configurations. Cross sizes, with bothlane sales and safety in mind. ® available on the Merchandisers market. Use actual WonderBar Bar merchandise a variety of products with Your customers can easily browseand 3the TM lane width from 2" to 3 /4 ". productEWT to set hooks, Expandable Wire Tray ease. Trays install without tools and out merchandise, which is held in lift place ® Reset lane width on set-upClear in less than System, and cooler Scan for restocking or product rotation. by quick built-in pins capable to keep product

30 seconds. Shelf-based and coolerlabel holders. Full includes and oversize fromline shifting or standard falling. Exercise your ready, this anchored system billboards trays, and display, and pusherrelated hooks. Call 800-444-4665 | TrionOnline.com opportunity to scan cross-sell product for easy selection and fast sale. products and keep your bottom line in Call 800-444-4665 | TrionOnline.com ZIP Track® forwards and faces product at Createutility Your shape! Of course these waterfall all times. Quickly add lanes with this easy hooks are perfect for more than hand®

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Over 450 Profiles C o n t a i n e r s ®W e l l C o n t a i n e d

Clear Scan Label Holders Cooler Capable AMT ®

Storewide solutions for any labeling need. Available in a variety of profiles Neatly and effectively display cooler S St taagg ii nn gg A Ar er aesa Bs u B iI ln t I n i lu tlabel (shapes), these bright,including clear holders and freezer items, yogurt, are easily positioned in single-serve all standard dips, puddings, ice cream, S i g n U p ! as well as C-channel configurations, These strong, downward-canted foods, andstrong, more. Our small Adjustable These downward-canted waterfall hooks lift more weights than displays metal, glass, wood, Merchandising Tray fits a range waterfallincorporating hooks lift (AMT) more weights than a personal trainer. Ready for a workout, wire baskets, wire shelving, wire fencing, of 4to 6-ounce cups; the medium AMT a personal trainer. Ready for a workout, What you want your customers to Trion do Industries’ hooks display heavy and scanning hooks. Plain paper labels organizes mid-range offerings; and the products, liketo free weights in multiple Trion Industries’ hooks display heavy know? Want promote great prices or drop inwith behind a clear flexible PVC front, large AMT gives ice cream lovers pause sizes, both and safety inin mind. products, like sales free weights multiple unique product features? Add wall tags Your customers can the their allowing labels beeasily changed quickly and to browse andtochoose abrowse pint sizes, with both sales and safety in mind. to your displays faster than youof can say merchandise, which is held in place inexpensively without messy adhesive favorite flavor (hmmm ...why not get both Your customers can easily browse the “sign Wall tags to mount by up!” built-in pins to allow keep you product backing. Adhesive label holders and Cherry Vanilla and Rocky Road?). This merchandise, which is held in place fromproduct shifting or falling. Exercise your your and price separately on strips also available if isrelated your need. manual-feed tray that to ensures cross-sell byopportunity built-in pins tothat keep product vertical display surfaces, forproducts cleaner products and keep your bottom line in boost Save time, increase visibility, and remain faced and accessible. Time to from shifting or falling. Exercise your overall shape!presentation. Of course these waterfall utility sales with this storewide labeling system. re-stock? Just lift out and refill. Add Clear opportunity to forcross-sell related hooks are perfect more than hand Call®800-444-4665 | and TrionOnline.com Cooler capable, color, built-in promo Scan Label Holder, and you’re finished! products and keep your bottom line in

Pin-Stop Waterfall Hooks Pin-Stop Waterfall Hooks Versatile Wall Tags

An Open and Shut Case P l a c e a L a b e®l A n y w h e r e TM o o k s ! Super H ®

Flip-Scan Hooks Scan-It Scan Arms WonderBar Hooks

Flip-Scan hooks are ® an open and shut case for ease of use. The articulated Scan-It do this? Scan-It do that? label holder ®lifts up and out ofversatile the way WonderBar Displays Scan-Its doare it the all! Scan-Its for easy product access, then falls back heroes ofmake the Trion product family, it easy to label and G the eviewing t rescue Crea t i v e you for product andneed price to when G e t C r eto acoming tvertical ive price products, regardless of info. Our unique label holder flexes open muscle and good looks to merchandise plan-o-gram fixture layout, so items plainofpaper labels can inserted all sizes. These Barbe Hooks canor unusual product shape, Mirror, mirror on theMirror, wall. You can be mirror on the wall. You can be effortlessly. Available with shortarms. label lift loads in their capable the most difficult item toheavy display of spaced displays. the most tightly difficult item to display of all. Clever merchandisers use large holders oror full length label strips and Display Scan, Saddle Mount Plug you need a or flexible all. CleverWhen merchandisers use large literature holders forconstructed three-dimensional, of long-life materials, these in, thereaid are Trion WonderBar to label and priceHooks items awkwardly sized items like mirrors, literature holders for three-dimensional, durable, attractive scan hooks can outfit for every need. quickly and conveniently, turn to framed art, clocks, and more. Available awkwardly sized items like mirrors, all display surfaces, including pegboard, in a range of sizes, gauges, and weights, this Swiss Army knife of outfitting. framed art, clocks, and more. Available slatwall, crossbar, and corrugated. Trion’s large literature holdersgrid, can TM be Scan-It is available in a range of in a range of sizes, gauges, and weights, spaced horizontally to accommodate all Fully compatible with the Clear Scan® back plate sizes and label can holder Trion’s large literature holders be manner of product sizes. Label Holder System for C-channel, configurations. horizontally to accommodate all Call 800-444-4665 shelf |spaced TrionOnline.com edge, wire basket, and refrigerated manner of product sizes. areas storewide.

Literature Holder Literature Holder

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Clip label strips available. shape! Ofholders courseand these waterfall utility Call 800-444-4665 | TrionOnline.com Call 800-444-4665 | TrionOnline.com Call 800-444-4665 | TrionOnline.com hooks are perfect for more than hand weights. Give them a try.

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Inc.

Scan-It Scan Arms

Scan-It do this? Scan-It do that? Scan-Its do it all! Scan-Its

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ZIP Track Merchandiser

product front-to-back to “ZIP” each traditionalists —even |product literature. Call Call800-444-4665 800-444-4665 |TrionOnline.com TrionOnline.com ® offers a wide track together. ZIP Track Call 800-444-4665 | TrionOnline.com range of adjustability for changing merchandise selections.

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preserved regardless of the type of transaction—with a physical card present or not—and regardless of the type of authentication, with or without a PIN. While hundreds of comments were filed on the Fed’s proposal from all sides of the issue, two comment letters stood out. The DOJ and FTC, both enforcement agencies, filed comment letters in support of the Fed’s action and called on the agency to strengthen competition in the debit market. The fact that these agencies felt compelled to file formal comments on another agency’s rulemaking, an uncommon practice, demonstrates how serious DOJ and FTC consider the issue.

The DOJ’s letter encouraged the Fed to consider how the global networks have tried to circumvent the routing requirements since the Durbin Amendment’s enactment and to consider how they may seek to do so in the future. The FTC asked the Fed to make it clear that the global networks can’t offer incentives to the issuing banks for evading their routing requirements. Before finalizing its proposal, the Fed will review the nearly 900 public comments it received. NACS hopes the Fed will heed the call from the retail community, DOJ and FTC to protect competition and ensure that the networks and banks stop circumventing the law.

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

ONE VOICE This month, NACS talks to Annie Gauthier, CFO/Co-CEO, St. Romain Oil Company What role in the community do you think convenience stores should play? Annie Gauthier Convenience stores should play an active role in the communities we serve. Since we serve half the population on average daily, we see a very diverse and reflective customer base and are uniquely poised to plug into our communities in unique and powerful ways. What does NACS political engagement mean to you, and what benefits have

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you experienced from being politically engaged? To me political engagement means staying informed, building relationships with legislators and regulatory agencies and reaching out with reasonable, rationale requests to inform relevant public policy. What federal legislative or regulatory issues keep you up at night? Labor issues keep me up at night more than anything.

Your voice can save your business. Scan the QR code to tell us what’s keeping you up at night and where you’re willing to lend your voice to NACS’ advocacy efforts.

What c-store product could you not live without? Probably should live with less, but I’m a sucker for our Y-Not Stop chicken tenders. And iced tea—half sweet/half-unsweet.

OCTOBER 2021 |

INSIDE WASHINGTON

Remembering Senator Mike Enzi BY LYLE BECKWITH

So, Mr. Enzi, after you win and get settled into your new job, we’ll have to go fly-fishing in Wyoming some time.

NACSPAC DONORS

In the spring of 1996, U.S. Senate candidate Mike Enzi and his campaign manager Flip McConnaughey visited me in the NACS office in Alexandria, Virginia, to talk about their race for the open Wyoming Senate seat. In meetings like this, many times candidates can appear overly enthusiastic (perhaps over-hyped on campaign coffee) and ideological, championing their pet campaign theme that pollsters told them resonates best with the voters. Not Enzi. He and Flip were as laid back and affable as could be. I instantly took a liking to them. Enzi went on to explain his background of opening a family shoe store in Gillette, Wyoming, (he understands retail—check!) and how he begrudgingly got involved in local politics (not a career politician—check!). Flip then explained it took him months to convince his friend to run for the seat being vacated by retiring Senator Alan Simpson (preferred Wyoming over Washington D.C.—check!). When the meeting was over and we were saying our goodbyes, I made the passing comment, “So, Mr. Enzi, after you win and get settled into your new job, we’ll have to go fly-fishing in Wyoming some time.” He did indeed win. I was shocked when several months later, I received a phone call from Flip (now Enzi’s chief of staff ) saying the Senator

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| OCTOBER 2021

was ready to go fishing with me. I flew to Wyoming, and we spent an incredible day drifting the Snake River catching cutthroat trout on dry flies. Over the years, Senator Enzi and I would fish many more times together. On the occasional weekend that he was stuck in D.C. and unable to return to Wyoming, we would go golfing. In 2000, at the Republican National Convention in Philadelphia, I was an unofficial tour guide for the Senator and his wife, Diana. Having grown up near Philly, I took the Enzis to the local hotspots for cheesesteaks and soft pretzels and helped them get to the various events around town. On a professional level, Senator Enzi was well-aligned with NACS’ positions. His retail memories of paying outrageous swipe fees to the credit card

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 August 1-31, 2021, are:

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Lyle Beckwith and Senator Mike Enzi shared a love of fly-fishing and spent many days casting for trout.

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INSIDE WASHINGTON

Lyle Beckwith is the NACS senior vice president of government relations. He can be reached at lbeckwith@convenience.org.

| OCTOBER 2021

companies stayed with him. Not only did he vote for the Durbin Amendment on debit card swipe fee reform, he was the only Republican senator to take to the floor to speak against legislation that would have repealed the Durbin Amendment. He was also supportive of our positions on labor, tax and energy issues. That is not to say he was always with us. When I explained to him our concerns with legislation to give the Food and Drug Administration regulatory authority over tobacco, he said, “Lyle, my mother died of lung cancer. I don’t like tobacco, and I’m voting for it.” That kind of blunt honesty is the most you can ask of a politician, and I deeply respected it. Throughout his Senate career, Enzi was well-regarded by his peers on both sides of the aisle. Liked by everyone for

his humble demeaner and “dad humor,” he built bridges where he could find common ground. He didn’t play games and did what he said he would. I and many others were saddened when in 2019, after four terms, Senator Enzi announced he was not seeking reelection. But we were happy for him because unlike others who develop “Swamp Fever” and never leave Washington, he was going home to enjoy his family and his beloved Wyoming. In July 2021, just months into the infancy of his retirement, Enzi suddenly and tragically passed away from a bicycling accident. I have met and worked with thousands of elected officials in my career. I even liked some of them. But Mike Enzi was one of the very few I considered a friend. Tight lines, Senator.

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IDEAS 2 GO

Food Takes Center Stage

The Filling Co. Gas and Grub puts the menu first. BY SARAH HAMAKER

We want customers to think of us first when they want great, convenient food.

Thirty years in the foodservice business helped the Rubino brothers—Rick, David and Steve—craft the menu at The Filling Co. Gas and Grub. Custom-made signs, reclaimed wood and polished floors elevate the interior design.

hile gas is in the name, it’s the grub that’s the focus of The Filling Co. Gas and Grub in Ashburn, Virginia. “We started with the fresh foodservice and built the concept around that,” said Rick Rubino, who owns the three-unit chain with his

SEE MORE! Ideas 2 Go showcases how retailers today are operating the convenience store of tomorrow. To see videos of the c-stores we profiled in 2021 and earlier, go to www.convenience.org/Ideas2Go.

| OCTOBER 2021

brothers, David and Steve Rubino. The family also owns three traditional convenience stores, as well as an Italian restaurant. “We’ve seen the way the industry is heading with foodservice being an important part of the future,” Rick Rubino said. “About two years ago, we decided it was time to branch out with a new concept, one that had a full, on-site kitchen and an extensive menu.” THE MENU The brothers built The Filling Co. with the kitchen and menu as the foundation. The stores all have ovens, grills and fryers to cook everything to order. “Nothing’s made ahead of time—it’s like a regular restaurant,” Rubino said. CONVENIENCE.ORG

ABOUT

The Filling Co. stocks customer favorites plus unique finds. There’s craft coffee, an extensive breakfast, lunch and dinner foodservice menu plus handcrafted milkshakes and smoothies. The beer cave has about three dozen different craft brews.

Name of company The Filling Co. Gas & Grub

The menu starts with breakfast and ends with dinner, although breakfast is served all day. “We have breakfast sandwiches, breakfast burritos, açaí bowls and French toast sticks,” he said. Other items include salads, subs, cheesesteaks, burgers, quesadillas, barbecue, hot dogs, fresh-dough pizza, soups, mac-andcheese and wraps. The menu also has desserts like fried OREOs, value items and a kids’ section. The grab-and-go case features fresh-made sandwiches, as well as ever-popular yogurt parfaits. Currently, cheesesteaks are the No. 1 selling lunch items. Customers can order on-site via kiosks or through DoorDash for delivery. “We were able to try our recipes out in our current restaurant before opening the first store, which helped us refine the menu,” Rubino said. “With our 30 years in the foodservice business, we were able to use that experience in crafting The Filling Co. menu.” The attention to detail extends to the beverage program. Coffee beans are provided by local roaster Lone Oak Coffee, and a state-of-the-art La Marzocco espresso machine helps craft cappuccinos, lattes and espressos, among other specialty coffee drinks. “Frappés were very popular this summer, and hot lattes sold more in the winter,” he said.

Date founded September 2020

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NOT-YOUR-AVERAGE MERCH The stores also try to offer more than the usual convenience store products, although those items are on the shelves, too. “We wanted to carry stuff that’s unique and harder to find,” Rubino said. “We’re in a higher-end market, so we want to cater to that demographic with our items.” For example, The Filling Co. stocks handmade, gourmet ice cream sandwiches by Nightingale, a Virginia company. “It’s been a real winner for us to stock these frozen treats with unusual flavors like cookie, peaches and cinnamon, and strawberry shortcake,” he said.

# of stores 3 Website www.fillingco.com Instagram @fillingcogasandgrub Facebook www.facebook.com/ FillingCompany

BRIGHT IDEAS Like many convenience stores, Rick Rubino, who co-owns The Filling Co. Gas and Grub with his two brothers, posts about the three-unit chain on Facebook and Instagram. He also tries to reach potential customers through location-based, online pop-up ads. “We’ve been doing the ads for about six months and have seen a good return on investment,” he said. “While it can be hard to tell since it’s online, it seems to be working, as our stores are gaining a following.”

OCTOBER 2021 |

IDEAS 2 GO

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

Half Horz.indd 34

| OCTOBER 2021

Along with wine, customers can find around 30 different craft brews, all kept cold in a beer cave. “We have a lot of Virginia breweries represented, as well as other craft beers,” Rubino said. “Every week, we have new brews from our breweries that keep the category interesting.” The décor also speaks to a different sort of c-store, with a garage door inside the store and reclaimed wood and brick on the walls. All signage is custom made, too. “We get a lot of compliments on how its look is not what you expect from a convenience store,” he said. Employees contribute to that atmosphere, with “everyone having a good time at their job, like good friends

working together,” Rubino said. “That’s the environment we try to create with our stores.” He achieves that by asking employees for referrals for other workers. “We’re constantly hiring and hitting up our workers to see if they know someone who should work for us,” he said. Employees are always happy to refer a friend. For Rubino, The Filling Co. Gas and Grub is the culmination of two decades of working in the convenience store industry. “We want customers to think of us first when they want great, convenient food,” he said. “We give them a whole other option for breakfast, lunch and dinner right here in their neighborhood.”

6/14/2021 11:08:52 AM CONVENIENCE.ORG

IDEAS 2 GO

From Shop to Store

How one retailer transformed his local goods shop to a thriving convenience store. BY SARAH HAMAKER

Mighty Moose Mart opened in December 2020, bringing a new kind of convenience store to Keene, New Hampshire. Fresh foodservice in a tiny kitchen is the backbone of the convenience store.

C We don’t want to be the old, staid corporate convenience store. 36

| OCTOBER 2021

hris Rietmann and his wife, Colleen, know retail. For five years, they ran a shop in Keene, New Hampshire, selling locally produced jams, jellies, crafts, candles and artwork. “The shop was in a good location with lots of traffic, and we did OK, but it wasn’t popping like we thought it might,” he said. That prompted them to sit down and think about what kind of store would do better in such a high traffic spot. Naturally, they came up with a convenience store, and Mighty Moose Mart opened in December 2020. “We came to New England from the Mid-Atlantic region where we’ve seen the success of

Sheetz and Wawa, plus the New Yorkstyle bodegas, and really, in our area, there’s nothing like those stores,” he said. FOOD AS CORNERSTONE For Rietmann, the backbone of the store would be its fresh foodservice. “A lot of country stores have a deli counter in New England, but we wanted to go beyond that and do something more,” he said. Since the store doesn’t have gas pumps, he decided to put more effort into the foodservice. All fresh-made food can be ordered via touchscreens. However, since he retrofitted the former shop, there wasn’t room for a full kitchen. Instead, they built a prep CONVENIENCE.ORG

ABOUT

Mighty Moose Mart owner Chris Rietmann and his wife, Colleen, used learnings from a prior retail venture when launching their new c-store. The menu extends from breakfast to dinner, with sandwiches, wraps and crispy chicken sliders.

area similar to a Subway restaurant layout and installed a speed oven to keep costs down and cooking times fast. “It’s worked out great so far,” said Rietmann. To add spice to the basic sandwiches made with roast beef, turkey and ham, the store has a wide array of toppings and homemade sauces. “We go beyond mayo, with sriracha/mayo blends, homemade horseradish sauces and a signature chili lime sauce, all of which we make in the kitchen,” he said. “We like to experiment with different sauces to constantly surprise our customers. It’s not a big investment to make a batch of a new flavor combination.” Beyond lunch sandwiches, Mighty Moose Mart serves breakfast and dinner, with sandwiches, wraps and crispy chicken sliders. “Because we’re small, we can try new menu options in a smaller quantity until we see whether or not our customers like it,” Rietmann said. “We see our competition as both quick-service restaurants and other convenience stores, so we want to be seen as an alternative to either of those.” The menu also reflects the store’s former life as a source for local goods, with a local hot mustard available as a condiment and for sale and a quarter-pound bacon maple cheese dog made with local ingredients. “We will likely build up our local section again as we see how CONVENIENCE.ORG

Name of company Mighty Moose Mart

products sell, but right now, we are sticking to a few top-selling items,” he said. The merchandise mix is heavy on beer, wine and ready-to-drink (RTD) categories. “We see RTDs as an up-and-coming category and have invested in those products, while we’ve seen a drop in the seltzer market and have stopped stocking so much of those beverages,” Rietmann said. He also is working on adding more healthy items to the store, such as fresh pickles, pickled green beans, hummus and olives, but concedes that the market for traditional salty and sweet snacks is huge. “We enjoy trying new products that are a little bit more healthy and believe some, if not all of those, will stick,” he said.

Date founded December 2020 # of stores 1 Website www.facebook.com/ mightymoosemarts

BRIGHT IDEAS Chris Rietmann, co-owner of Mighty Moose Mart in Keene, New Hampshire, views staffing differently. “We’re in a unique position to provide jobs and training to people entering the workforce for the first time,” he said. “The market’s always vying for the mature worker, the more experienced person, but for the recent high school graduate, we can offer them a place to gain the skills to work in retail and understand how business operates. We see ourselves as mentors to a new generation of workers, and frankly, it’s kind of exciting.”

OCTOBER 2021 |

IDEAS 2 GO

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

Half Horz.indd 1

| OCTOBER 2021

A DIFFERENT DRUMMER Mighty Moose Mart has developed a reputation for being a little off beat. A sandwich board with replaceable lettering welcomes customers outside the store. “Right now, it says, ‘Have Fun,’” Rietmann said. “We don’t want to be the old, staid corporate convenience store.” To keep the store fresh, Rietmann pays attention to industry trends and tries to be first to bring them to his market. “For example, we’re keeping a close eye on beverage trends to see what will be the next kombucha,” he said. “We’re mindful of the pulse of the industry and of what our customers are saying to stay on top of trends.” He views the future of the convenience and fuel retailing industry very

The cold vault features a variety of beer, craft brews, wine and ready-to-drink cocktails.

optimistically. “We’ve been around for less than a year, but I do feel that we’re making a difference in changing the perception of the entire industry,” he said. “This industry as a whole is definitely moving forward, and everything we’re doing, someone else is doing, too.”

9/14/2021 6:31:29 PM CONVENIENCE.ORG

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AHEAD OF THE

GAME Circle K Europe shares its successes and strategies around gamified training, and experts weigh in on the future of employee engagement. By Renee Pas

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OCTOBER 2021 |

you have ever been enticed into working out more intensely because of a leaderboard on a fitness app or the fireworks that will go off if you hit your predetermined step count on your smartphone’s pedometer, you understand the pull of gamification. By definition, gamification takes what makes games fun and applies it to a topic as a way of engaging and motiving people. Where it differs from merely playing a game is that gamification involves a requirement or purpose outside of the game. As a training element, most wouldn’t have imagined it a decade ago. Think of gamification as another tool, said Sam Caucci, founder and CEO of 1Huddle, a workforce tech company that specializes in gaming technology. “When sprinkled across the organization, it can make work more fun, help people feel connected to others and make people feel more rewarded as they grow through organization.” The workforce is changing, Caucci said, and the younger generation is far more connected with gaming technology. “Five years ago, you didn’t have a lot of Gen Z in the workforce. Now you do,” he said. Technology is instinctive for this group of digital natives who grew up in a world with smartphones, mobile apps and the latest gaming technology. Gamification has actually been around longer than Gen Z, Caucci pointed out—it is the evolution of gamification that has advanced as of late. “I’m seeing a surge today in the number of software companies adding it as a feature to sexy up a boring function,” he said. That makes it increasingly important to better understand gamification and how it can be effective. One

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c-store company doing just that is Circle K. RETHINKING ENGAGEMENT Circle K continues to scale up with the gamification journey its European counterpart started in 2019. The platform landed in the U.S. about a year ago and continues to gain momentum after starting with a small group of 50 stores and finding that the early results in the states matched the results in Europe. Since that first U.S. test group, the organization has been working to scale it up in a larger way and build internal excitement around the new gamified platform. “We saw the exact same data in the U.S. as Europe—both showed increased sales and engagement,” said Kristian Styrmo, director of people development for Circle K Europe.

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For the convenience retailer, the idea of gamification started with the realization that there was a need to rethink employee engagement and training, said Styrmo. “We looked into future trends in the training space and the decentralized model of Circle K operating in many countries and felt there was a gap; we needed to deliver a different infrastructure to maximize potential,” he said. Reflecting on Circle K Europe’s journey with gamification innovation, Styrmo said the most important piece—the one he continues to keep top of mind and would recommend to others—is to remember the end user. “You cannot start with the corporate side,”

he said. “Instead, directly connect with the end user to understand what they think and what makes them excited.” Maintaining an end-user focus is something Styrmo believes is worth obsessing about. “You have to obsess about the end user. The product is for them. Our job is to give them the tools to grow.” The tools revolve around different virtual training modules with game play baked into the format. Styrmo explained that the intent is for each session to include deliberate learning objectives, while also being engaging enough that the user would intrinsically want to repeat the module more than once.

GAMIFIED: A BEGINNER’S GUIDE TO BRANCHING Gamification elements like the ones incorporated by Circle K Europe are readily available today, said Jeff Kahler, president of Ready Training Online, a production and learning management company, and the NACS e-learning and education partner. Content “branching” scenarios are one of the most common components of gamification today, Kahler said, along with leaderboards and badges. Branching allows users to make different choices as they go through their gamified journey, explained Kahler. Leaderboards encourage competition, such as a Peloton user pedaling faster on a stationary bike to rank higher than others on the ride, and badges are earned rewards, such as points or even an emoji. In content branching, the user has multiple decision points, each choice leading down a different path to one of several possible conclusions. Branching allows the user to learn by making a choice, Kahler explained, and immediately see and feel the impact of those choices, which of course connect to the employee’s tasks and responsibilities. Moreover, branching creates more interactivity than watch-and-do training videos of yesteryear. Kahler provided a store level choose-your-own-adventure example of branching as it relates to suggestive selling. The gamified user watches as a customer walks up to the foodservice counter. The customer says, “I’d 46

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like to order a footlong hoagie.” The user then sees a few options, all of which start with the employee asking, “Would you like to add…” The choices for the employee to finish that sentence are: A., cheese for an extra 75 cents; B., double meat for an extra $1.99; or C., bacon for an extra $1.19? “After the user makes the selection, the training opportunity would be to show the user the related cost associated with each option,” Kahler explained. “Although the cheese option may be the most inexpensive option, there may actually be more profit in it than the double meat option.” There is no actual “wrong” answer for the employee, Kahler said. “It’s a training opportunity to tell employees, ‘You could have done this differently, but you’ve not necessarily failed in your mission.’” Overall, the more interactive, the better when it comes to gamified approaches, said Kahler. One big piece of advice he has for anyone looking at integrating gamification into their training is to first understand what gamification means for your organization. “I have people call me all the time and ask about gamification. My first question is, ‘What do you want out of it?’” Knowing that answer, he said—whether it is to reward, train or even use gamification for a competition of some kind within the organization—guides the rest of the conversation about integrating gamified solutions. CONVENIENCE.ORG

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You have to obsess about the end user. The product is for them. Our job is to give them the tools to grow. Circle K’s gamified training program, dubbed CK Star, includes a series of “episodes” that engage store associates in different on-the-job scenarios. Employees earn points by completing each episode. It’s about immersing users in real-life, store associate-level situations. In the gamified platform, users enter the 3D world of a Circle K location, where Circle K employees walk around the store training the user on situations that they will experience daily when dealing with customers. Employees use either their own mobile device or a Circle K tablet. The virtual format shows the user performing the task they choose. Users score points as they progress through the session, receive constructive feedback along the way and can see how they measure up against colleagues at their store and all Circle K stores globally. The session ends with some level of praise and encouragement to continue mastering more skills and a note that suggests continuing to play to improve their score.

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The entire approach challenges the traditional idea of training “because you want to complete it,” Styrmo pointed out. “It is fun; you want to do it again.” He hopes employees want to repeat the game up to, say, 10 times, to build retention through repetition. While gamified training modules certainly appeal to a younger demographic, Styrmo said that Circle K wants it to work for all demographics and did not target a specific age group. The end goal was about moving the majority of the workforce to a new engagement level, he explained. To note, Circle K’s gamified training methods remain a part of a bigger mix of traditional forms of training. “We’re not ready to go fully gamified,” said Styrmo. “We have established that the technology is interesting. Now we have to see how to use it more.” Styrmo and his team are currently investing time into how exactly to expand the technology. “We are testing how wide and deep we can go with it,” he said. JUSTIFYING AND EXPANDING One of the critical points for success in a program of this magnitude is having corporate leaders willing to invest and to justify the investment, Styrmo said, adding that putting numbers to it is an expectation. After half a million repetitions of the gamified training, Circle K data show employees repeat the training several times. “That tells us we are building something compliant, and they want to engage with the platform,” said Styrmo, who shared the results of Circle K Europe’s success during the virtual NACS Convenience Summit Europe in June. The stores that have been doing training have seen a lift in merchandise sales, he said. Additionally, 90% of employees report they like the training and think it will help them in their jobs, and turnover declined by 5%. “We have not seen CONVENIENCE.ORG

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this level of engagement in training before,” Styrmo said. “The hypothesis was that if we delivered more engagement, people would be more inclined to stay, and this is turning out to be the case.” On top of the internal results, a recent human resources award added some panache to the Circle K Europe innovation. Circle K Europe’s gamification strategy earned the Best HR Technology Strategy award as part of HR magazine’s HR Excellence Awards 2020. “It’s really the start of a longer journey for us,” said Styrmo. “There are a lot of lessons to be learned when working with employee

engagement, both from the perspective of working with innovation in general and in experimenting with engaging employees. The big question to ask is: What’s the opportunity within that space?”

enee Pas has spent more than R 20 years writing about various retail channels. Her formative c-store years were spent in communications at White Hen Pantry, a family-owned c-store chain acquired by 7-Eleven in 2006. She can be reached at reneepas4@gmail.com.

MAKING IT FUN TO FAIL Considering taking the next step toward integrating gamification? If you want to encourage repetition with gamified training, a few specific components tend to keep the user coming back, said Sam Caucci, founder and CEO of 1Huddle. Here, he outlines three keys to a great game: 1. O ffer choices. The best games give the players choices, Caucci said. Allow players to customize their profile, create an avatar and pick colors. “Don’t make them watch a module and not be able to get out of it,” he advised. Offering choices can include allowing them to choose their own mission, per se. He described this example: “Renee, you are being onboarded at Karen’s Convenience Company. Here are three things you need to do, and you can do them in any order.” 2. Ensure the player feels good about something. The idea here is that as the player starts to succeed, a new level of difficulty emerges. Caucci cites Duolingo as a good example, where the first two or three levels of the language-learning app are easy. “It gets you sucked in, and then the challenge starts to emerge, but it makes you feel good in the process,” he said. 50

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“In a retail brand today, using technology to tell employees they are doing a good job is an awesome use of technology.” 3. M ake sure the user feels important as a player. “As I succeed, I can see the way my store is succeeding,” is how Caucci connects this idea for front-line workers, such as cashiers. Popular games today are team-oriented, he said. “It’s a big movement in game-play today.” Examples include online video games such as Fortnite and Minecraft, where groups of people can collaborate to play a game. When designed the right way, a user in a gamified system will just try again if they fail. “I always tell leaders, reading from a PowerPoint is not challenging,” Caucci said. “Let people fail and struggle and gain confidence and get better. Games and gamification make it fun to fail.” He likens it to beating a level in a video game where players simply keep trying until they get through the level. “There are so many great parallels to the workforce, we just have to tap into it and create an environment where people don’t get upset if they fail, they just try again.” CONVENIENCE.ORG

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A TEXASSIZE

TRANSITION Kwik Chek’s rebrand to TXB puts a spotlight on food and emerging technology. BY TERRI ALLAN 52

| OCTOBER 2021

evin Smartt’s vision for his growing retail business is that “it will be known, first, as a food destination and a high-quality place to shop, as well as a place for energy needs—whether it’s fuel or electric.” With a major chain rebrand underway—and an immediate strong response from consumers—Smartt, the CEO of Texas Born Inc. (TXB), is well on his way to realizing his goal. Formerly known as the Kwik Chek chain of convenience stores, TXB is the reimagined concept comprised of 46 units in Texas and Oklahoma, stretching 1,250 miles north to CONVENIENCE.ORG

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We elected to not put in any indoor seating, opting strictly for outdoor dining. south and 950 miles east to west. The company was founded in 1972 as a fuel distributor, McCraw Oil, and the first Kwik Chek launched in the late 1980s, according to Smartt. He joined the company in 1992, and “worked in various positions throughout the company, moving from the ground up,” he said. In 2001, Smartt and his now late partner Doyce Taylor bought the business and went on to double its size— both for fuel distribution and retail. Since Taylor’s death two years ago, Smartt has acquired 100% of the company. Headquartered in Spicewood, Texas, TXB employs about 600 workers, and its sister fuel distributorship operation boasts 150 workers. While a rebranding had long been on the table, the official transitioning of Kwik Chek to TXB wasn’t announced until late last year. “It exemplifies who we are as a company,” explained Smartt, NACS 2020-21 chairman, of the move. “We are Texas Born. I’ve lived all throughout the state of Texas and have great pride in my roots.” Moreover, he added, the concept’s new branding “emphasizes our values of authenticity, integrity and hospitality.”

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PROTOTYPE UNVEILED While the company is in the process of rebranding its existing stores inside and out, it unveiled its first new TXB buildout in late summer. The 6,000-square-foot store, located in Georgetown, Texas, an Austin suburb, is somewhat larger than the chain’s average 4,400-square-foot store. Overall design features include heavy use of a black-andwhite palette and vertical, rather than horizontal, placement of the TXB logo. “I’m proud of the design and architecture. It’s very unique,” said Smartt. “We’re leaning into our Texas roots, but it’s modern-day Texas, a nice representation of what Texas is today.” The retailer added that early response to the new store has been “tremendous” from both guests and team members alike. “There’s been a lot of positive comments and activity so far,” Smartt said just days after the opening. The interior of the TXB prototype is designed to connote more of a market feel than that of a gas station, with freshly prepared foods at the center of attention. An open kitchen allows CONVENIENCE.ORG

In a unique move, the Georgetown store doesn’t post fuel prices at the street level. guests to see their orders as they’re made, while large grocery-sized “grab-and-go” boxes provide time-pressed customers with quick-and-easy meal solutions. “As a consumer, I enjoy seeing the food prepared in front of me,” Smart said of the open-kitchen format. “It’s advertising for the retailer and builds confidence in the consumer.” A fresh fruit and produce table, meanwhile, “adds a nice finishing touch to the shopping experience,” Smartt added. Adjacent to the fresh foods section is a hand-washing station, a thoughtful option for guests who may shun public restrooms. The center store features high-end gondolas that are slightly taller than the standard, while the front end is devoid of traditional lottery equipment, boasting digital lottery screens instead. The upscale feel of the concept is extended to the exterior, which features spacious outdoor seating for up to 40 guests. “We elected to not put in any indoor

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seating,” Smartt said—prompted somewhat by the mandated shutdown of indoor dining at the height of the pandemic last year—“opting strictly for outdoor dining. In Austin, we’re fortunate in that for most of the year, people can sit outside.” Fans and a misting system augment the natural climate during warm weather, while heaters are available on cool days. The building’s exterior showcases art from local artists, and according to Smartt, “our plan is to continue to focus on local artists moving forward.” In a unique move, the Georgetown store doesn’t post fuel prices at the street level. Rather, Smartt said, “we opted to talk just about our food—our fresh tacos and chicken tenders. That’s how we want people to think of us.” The new store features two direct-current fast-charging EV stations, along with four fuel pumps. Smartt cited several partner companies in helping the plans for the new store come to fruition. The ThreeSixty Group in Indianapolis, for example, a marketing and branding firm, “helped bring the concept to light,” he said. VLK Architects in Fort Worth, meanwhile, “figured out how to implement a lot of the design features,” Smartt added, while Technology Service Professionals (TSP) in Dallas “created the operational elements.” Combined, the three companies shared a “nice symbiotic relationship,” he noted. FOOD FRONT AND CENTER TXB’s emphasis on foodservice is immediately apparent, with food comprising about half of the Georgetown store’s footprint. Known for its freshly prepared Mexican fare, including Texas-made tortillas, and hand-breaded chicken tenders, the CONVENIENCE.ORG

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Our development team is constantly looking at new products—products that taste great, that consumers want, are easy to cook and on trend. concept particularly focuses on the lunch and dinner daypart, Smartt noted. For fans who would like to emulate the offerings off-site, he reported, “We’re packaging up our seasoned fajita beef and chicken in TXB packaging so guests can take them home and cook.” The company also works with vendors on pre-packaged specialty foods, such as sushi, in grab-and-go boxes. “We’re trying to give our guests plenty of new options,” the retailer explained of the concept’s varied menu. TXB’s development team plays a key role in the chain’s fresh food offerings. “Our development team is constantly looking at new products,” Smartt said,

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“products that taste great, that consumers want, are easy to cook and on trend.” In addition to foodservice, TXB is placing a big focus on its eponymous private-label products. The line includes four TXB jerky SKUs, all made with Texas beef; three ready-to-drink teas, including Fredericksburg peach tea, a nod to the Hill Country city known for its peaches; a pH-balanced water; and a salsa. At press time, a nuts and seed line was set to launch, along with TXB’s own coffee, packaged in one-pound containers and K-Cups. “Response to our private-label products has been tremendous,” Smartt reported. “The product is very high quality, and the packaging is first class. It stands up to any CPG packaging out there today. We’re putting our private-label products front and center, so our consumers have the opportunity to see them.” Technology is also playing a role in the rebrand as Smartt has long been a champion of technology-led advancements for the c-store industry. TXB is currently working on expanding its mobile ordering and delivery capabilities, and at press time, offered home delivery from about half of its stores via partners like Door Dash and Uber Eats. “Our goal is to get about 85% of our stores on home delivery by the end of the year,” Smartt said. TXB also plans to add some in-store items to its menu of home-delivery products through its app. In addition, TXB is involved with piloting the TruAge™ digital age-verification system, recently launched by NACS, in partnership with Conexxus. EXPANSION PLANS Smartt conceded that the rebranding—and its timing during a pandemic—has come with challenges. “COVID extended the building period longer than we thought,” he said of the Georgetown location, CONVENIENCE.ORG

We’re putting our private-label products front and center, so our consumers have the opportunity to see them.

pointing to the permitting process, subcontractor labor issues and access to equipment. “But since it was our first store, we built in a lot of discovery time to figure out what our new-to-industry TXBs would look like,” he noted. Like other retailers, TXB has been challenged by labor shortages of its own. “This year has been the hardest year we’ve ever experienced, even harder than last year,” Smartt said. But the company’s investment in a field recruiting team seems to be paying off. “Applicants were at a 12-month high in July,” he reported. ONLINE EXTRA: With the first TXB new-build See a photo gallery now up and running, the company of the grand opening is setting its sights on completof the Georgetown, ing the rebranding at existing Texas, TXB location at units. That phase was expected NACSMagazine.com. to begin in late summer through a regional approach, with the Oklahoma stores likely the last to

| OCTOBER 2021

be rebranded. Smartt expected the process to take about 1 ½ years to complete. Additional new ground-up units are also planned. At press time, construction of a TXB in Bee Cave, Texas, was set to begin in September, with another unit in Cottonwood Shores to get underway in October. Two additional properties in Austin “will probably start shortly thereafter,” Smartt revealed. “Our goal is to build a minimum of 25 stores in the Austin market over the next five years.” Already, Smartt and his team are tweaking the Georgetown prototype, with the new stores expected to feature food locker rooms for delivery drivers and mobile app users, as well as self-checkout units. Smartt and the TXB rebrand epitomize the resiliency and adaptability of the c-store industry. “For years, this industry has responded quickly to headwinds,” the NACS chairman remarked, noting that those headwinds started long before COVID19, with disruptions such as online shopping and home delivery. “The c-store industry has shown that we’re active in our communities and great operators,” Smartt said, “and we put those skills into practice every day.”

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

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Gover, Social, and Environmental these ESG stands for ly applying are increasing sis nance. Investors of their analy rs as part facto cial non-finan and growth opmaterial risks ify of ident part to only process ics are not comm metr ESG anies . portunities , though comp cial reporting al mandatory finan s in their annu ng disclosure maki rt. ly repo asing are incre sustainability a standalone Sustainability report or in s, such as the ution al instit Glob s Numerou (SASB), the dards Board on Accounting Stan the Task Force tive (GRI), and are Reporting Initia osures (TCFD) Financial Discl riality lated mate te-re Clima define standards and factors into the working to form poration of these to facilitate incor ess. investment proc ral key demand, seve accelerates in l As ESG investing te change to socia , ging – from clima , in particular trends are emer avirus pandemic coron ectThe conn unrest. the inter ssions about discu m. sified syste has inten the financial inability and by susta try of ss indus edne financial is leading the and CFA Institute ening experts ble research, conv to producing valua setting standards discussion, and practitioners for investing. streaming of ESG main the le enab

The investment community’s spotlight on ESG is creating a groundswell for retailers to establish benchmarks. BY CHRIS BLASINSKY

| OCTOBER 2021

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hen ban ker s, potent ial inv estors and business associates ask abo ut you r company’s sustainability init iatives, the diversity of you r workforc e, or the hea lth and safety of you r employees, wh at wil l you be able to sha re? The increasing interest in ans wers to questions like these are leading ma ny convenience retailers, bot h publicly traded and pri vately held, to develop env ironmenta l, social and governance (ESG) pla ns and benchmarks. The ban king and invest me nt com munit ies have long expressed intere st in issues that focus on people, the env ironment and prosperity. It’s becom ing more com mon for fina ncial institutions to consider ESG factors wh en ma king cor porate loa ns and providing bor row ers wit h lower interest rates based on their sus tainability profile and attention to climate risk s, as well as areas such as execut ive pay, politic al affi liat ions and working condit ions. SETTING THE STRATE GY Ultimately, how a company approaches ESG pla nning and progra ms boi ls dow n to its values, vision and long-term goa ls.

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With about 2,700 retail site s, Parkla nd, headquartered in Calgar y, Alberta, Canada, is a convenience store operato r and independent supplier and ma rke ter of fuel. Christ y Elliott, chief sustain ability officer at Parkla nd and executive sponsor and cha ir of the company’s sustain ability taskforce, sha red that Parkla nd’ s sustainability strateg y links directly wit h its overall enterprise strateg y. “If our enterprise strateg y doe sn’t fit with what we’re trying to do on sus tainability, none of it hangs together—it can’t be something on its own to be the mo st effective,” said Elliott, adding that ESG only makes sense if it’s linked to Parkla nd’s broader business and low-carbon stra teg y. “Whet her you are a publicl y traded company working on ESG or a privately held company calling it CSR or sustainability, it’s all par t of develo ping a strong and balanced long-term bus iness strategy,” said Adam Ha mmes, ma nager of sustainability at Des Moine s, Iowa-based Kum & Go.

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THE G: GOVERNANCE The “G” in ESG is often forgotten amid considerations over climate risk, societal implications and other “E” and “S” risks and opportunities. However, understanding governance risks and opportunities is critical. Governance covers a broad range of corporate activities including board and management structures, as well as a company’s policies, standards, information disclosure, auditing and compliance. It’s also the least complex ESG component to measure since structure, policies and controls are easy to demonstrate and likely have been tracked for some time. Governance components often include setting goals and/or implementing risk improvements in the following categories: • Separation of CEO and board for balance of powers

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•E xecutive, management and employee compensation disparities • Policies on gender pay equity • I nclusive corporate rights and responsibilities for the board, executives, management and employees • Supply chain management • Tax strategy • Risk management THE S: SOCIAL While climate change is frequently front and center in the conversation about ESG concerns, social issues are increasingly prominent. The social piece of ESG focuses on the internal operations of employee relationships, having a diverse and inclusive workforce and customer and community relationships. The social and environmental components often overlap, especially for carbon-intense industries that engage in programs like tree planting, recycling, managing food waste and reducing single-use plastics. BlackRock Inc., the world’s largest asset manager, is pushing companies for greater ethnic and gender diversity for their boards and workforces. The money manager, which oversees more than $7.8 trillion of assets, is asking U.S. companies to disclose the racial, ethnic and gender makeup of their employees—data known as EEO-1—as well as measures they’re taking to advance diversity and inclusion. THE E: ENVIRONMENTAL Company-adopted environmental practices for the fuels and transportation industries can vary from recycling to fuel system leak detection to carbon emissions. For now, ESG “is a voluntary program that’s being directed by the financial institutions,” said Jeff Hove, vice president of the Fuels Institute, in a Convenience Matters podcast, “Why ESG Is Becoming Important to Retailers,” adding that ESG planning requires companies to track metrics that are material to greenhouse gas emissions (GHG) and build toward a low-carbon future. “Because ESG is ultimately driven by investor demands, it is possible for new interests (social equity is on the rise) to also play out in the ESG CONVENIENCE.ORG

AN N ESG PLap W O R lication tool, U O Y SG E CRAFT itute is developing an online eforep year’s end. The

st be live b The Fuels In ore rs, and it will ile ta re r e data and st fo , ty re and analyz ESG Integri tu p e their ca in to m rs er ws retaile port to det re al nu an platform allo ing an ements. while generat s and achiev information, al o g SG E itable report d -focuse ent and aud ar sp an tr sustainability a te a guide and ion helps crea and serve as ly er rt The applicat ua q r yo ific ESG plan. dated monthl mpany-spec co a g in p that can be up o devel w many me spent on rics—like ho et m ng ti ut reduce the ti p t in nmental tailer can star r other enviro o s ur ese ho “Where a re t at y kilow to include th el, how man low the user al ill ts w ac n p io gallons of fu im at plic hat the ur tracking ap determine w lp r he he d ot an practices—o n an SG pla ing that uts in their E ff Hove, add Je t en d si types of inp ss re re Vice P n prog els Institute ack their ow are,” said Fu be able to tr ill w s ie an p at com benefit is th g system. ions, we can cord-keepin re a ing organizat at p ies ci ti through ar p of allow compan critical mass try” that will us d id. in sa “If we get a e he th , r k fo d others a benchmar emselves an th t ns ch ai en start creating ag b e ance thes their perform ulated, having g re les m ow o to compare kn ec b ustry’s SG planning share the ind “If or when E portunity to p o quirements an re us d e so giv programs an al ti en marks will al ot p at aspirational gulators so th s rather than ct fa t ke edge with re ar m d experience an are rooted in . id sa Hove objectives,”

plan. Climate change and the emissions that exacerbate climate change, however, will most likely be the leading concern by investors,” he said. “The transportation fuels industry is carbon intense, and most people realize that transportation right now leads the way for greenhouse gas emissions,” said Hove, adding that ESG does not demand a zero-emissions economy. “It’s asking the industry to look at where emissions are coming from under the ‘E’ aspect of ESG. And that can be anything from your kilowatt hours consumed for the different locations of doing business to the carbon intensity of that electricity. For the most part, we’re really looking at the carbon intensity of the gasoline, diesel, ethanol, the biodiesel—anything that’s in your fuel mix,” Hove said. Risks associated with climate change are driving the ESG agenda, and as a source of GHG emissions, convenience retailers should be documenting the steps they are taking to decarbonize and reduce GHG emissions.

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WORKING TOGETHER In 2019, Parkland’s management team initiated a sustainability task force with leaders that represent the company’s functional units. The team

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completed a materiality assessment and reviewed ESG priorities important to Parkland, its shareholders and customers and identified five strategic ESG issues: 1. Climate change 2. Safety and emergency preparedness 3. Product transportation and storage 4. Diversity and inclusion 5. Governance and ethics Elliott of Parkland noted the importance of having a diverse group of internal stakeholders to shape an ESG strategy. “The first thing is to think about the material sustainability issues important to the business. For that process to be collaborative, you need a lot of voices in the room and a lot of brainstorming. Initially you may come up with 40 issues, but you’re going to be better off choosing five or six key issues and working from there because it needs to be manageable,” she suggested. Next, companies should consider where they want to be from an ESG perspective: How will the business operate in a responsible, effective and profitable way in a low-carbon world? “What will help you develop that answer is coming up with the key issues you’ll need to be thinking about and addressing,” said Elliott. LONG-TERM IMPACTS At Kum & Go, sustainability as part of an overall ESG viewpoint is seen as smart business and the right thing to do. Hammes suggests that companies identify the priorities that fit their business model, culture and values. “Kum & Go approaches this like other business priorities: using data, being agile and tapping into expertise for continued learning and innovation. Although we’re a medium-sized operator and privately held, we still use ESG tools and benchmarking to ensure we are competitive and ‘punching above our weight class’ in the areas we identify as priorities,” he said. Kum & Go has conducted internal stakeholder engagement and benchmarking against peers by using the U.N. Sustainable Development Goals and SASB standards. “We expect to continue using additional tools like external stakeholder CONVENIENCE.ORG

Listen to Convenience Matters podcast “Why ESG Is Becoming Important to Retailers.”

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engagement and benchmarking against the Global Reporting Initiative (GRI) reporting standards,” said Hammes, adding that this helps inform Kum & Go’s overall planning process. “It’s an ongoing iterative approach versus one-and-done,” he said. Soon enough, however, businesses might be driven to ESG by more than altruistic sentiment. Since his confirmation as the chair of the U.S. Securities and Exchange Commission in April, Gary Gensler has made reforming ESG disclosures concerning climate change risk and human capital a top priority, and the SEC’s regulatory agenda confirms as much. In May, President Joe Biden issued an executive order encouraging regulators to assess climate-related financial risk. Congress is considering measures that would require increased ESG disclosures, including the Improving Corporate Governance Through Diversity Act, the Diversity and Inclusion Data Accountability and Transparency Act and the Climate Risk Disclosure Act. TELLING THE ESG STORY Ensuring that all stakeholders understand a business’s ESG position is not just the communications team’s role. Every employee effectively acts as an ambassador and representative of the company’s ESG ethos. “People want be part of something. It’s exciting to feel like we’re a part of change and making a real impact. That’s an exciting place to be,” said Elliott. Parkland published its inaugural sustainability report in 2019, signaling the company’s intentions to be transparent moving forward: “We recognize that a significant aspect of sustainability involves transparency … While we move forward in our sustainability journey, we are excited to build on this inaugural report and continue improving sustainable business practices throughout our organization.” Kum & Go published its second CSR report in 2020, highlighting its work to deliver more renewable fuels and EV charging to customers and its investments in solar installations, environmentally friendly construction materials and packaging. “We publish an annual CSR report with ongoing internal and external communications focused on getting the word out,” said Hammes, adding that it

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is Kum & Go’s priority “to continue improving and evolving these efforts.” Casey’s, based in Ankeny, Iowa, published its commitment to environmental and social responsibility via its 2021 ESG Report—the first one created by the convenience retailer. WHY THESE METRICS MATTER Scot Case, the vice president of CSR and sustainability at the National Retail Federation, explained how sustainability took root in the early 1990s as an environmental initiative and moved to the early 2000s with a focus on the human element of corporate social responsibility goals. By 2010, ESG emerged from the investor community as a call for companies to report their environmental, social and financial metrics under a common framework. As metrics have become more sophisticated, they can fit within the language applicable to a company’s ESG goals. “What are we measuring, and who cares that we’re measuring it? That’s where ESG becomes relevant for all retailers,” said Case. For smaller retailers that want to grow and increase their store count, Case explained that investors and financiers will look at whether the business understands the potential impacts of climate change and regulations and other elements of ESG. “If I’m a small operator and I want to get bigger, an ESG framework could help me understand risk that I might otherwise be unaware of and help me respond to potential investors, bankers or potential acquirers,” Case said, adding that retailers of any size should understand their risks and opportunities. “An ESG framework can provide valuable insights to the business, and ESG can be as complicated as you want to make it,” he said. The increased attention to ESG may have started in the public markets, but it will almost certainly have downstream effects for retailers. Chris Blasinsky is the content communications strategist at NACS and can be reached at cblasinsky@convenience.org.

CONVENIENCE.ORG

Reawakening t he Morning Daypart Convenience retailers lean into breakfast with bean-to-cup coffee, breakfast pizza and French toast flavors. By Pat Pape

ny way you look at it, the year 2020 wasn’t pretty. During the lockdown, c-store visits declined by just over 19% versus 2019, and visits during the profitable weekday morning rush fell 26%, PDI data indicate. But business is on the upswing. “Morning rush trips are up 6% versus 2020, which is not surprising given the drop in March to May 2020,” said Dafna Gabel, vice president, insights, at PDI Software, an enterprise management software company. “Morning rush is recovering faster than other key weekday dayparts—lunch, afternoon and evening. However, morning rush trips aren’t yet back to pre-pandemic levels. That daypart lost the most and still has the most to gain.”

| OCTOBER 2021

CONVENIENCE.ORG

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Beyond

Breakfast

Not all c-stores saw sales decline during the worst days of the pandemic. At Pak-a-Sak, the Amarillo, Texas-based chain, “we actually had record-breaking numbers,” said Russell Barber, district manager. “We saw a lot of changes in categories that were unusual. But where one category was down, it was offset by a large increase in other categories. “For example, our fountain drinks were down, but our package beverages were way up,” he said. “We also saw a large increase in cigarette and beer sales and assume that people working from home could take smoke breaks all day, and obviously [they wanted beer at home] because of the decreased capacity in restaurants and bars. Honestly, our biggest hurdle the entire year was not a decrease in sales but supply line issues.”

But one good thing about today’s c-store shoppers is that they’re spending more per trip, and Gabel doesn’t see that waning. “They’re making fewer trips, but they are spending more money,” she said. “That could be due to inflationary pressures or purchasing new items that are potentially more expensive, but we’re definitely seeing more units in the basket.” NEW OPTIONS The way to the consumer’s heart is through the stomach, especially after 18 long months of cooking at home. In September, Casey’s, the Iowabased chain with 2,300-plus stores, made a major investment in its foodservice program with an emphasis on the morning rush.

| OCTOBER 2021

“It’s a massive endeavor for our brand, and we’re excited to be lining it up ‘back to school’ and getting back into the swing of things this fall,” said Tom Brennan, chief merchandising officer, Casey’s. “We’ve created a new signature handheld made fresh in our kitchens. The base is our made-from-scratch dough wrapped around warm eggs, savory sausage or bacon and two types of cheese. Our guests love cheese, and I have to say, it’s delicious and portable.” In addition, Casey’s has created a loaded breakfast burrito stuffed with eggs, potatoes, sausage, bacon and cheese, and “we have an option for guests who don’t want the tortilla,” he said. Pilot Flying J begins serving breakfast at 5 a.m. daily, and in April added four new breakfast sandwiches to the morning menu. “They include a sausage, egg and cheese biscuit; a bacon, egg and cheese biscuit; a sausage, egg and cheese croissant, and bacon, egg and cheese French toast,” said Jamie King, senior director of food and beverage, Pilot Flying J. Based in Knoxville, Tennessee, the 750-store chain encourages guests to explore new flavors by offering limited-time menu items. “This summer, our French toast stacker was a popular, sweet and savory breakfast item,” King said. “We promote our newest chef-approved creations on social media and inside the store, as well as offer guests limited-time deals in the myRewards Plus app.” Atlanta-based RaceTrac takes a holistic approach to the morning menu. “We’ve focused on bringing exciting new options to our morning guests throughout the pandemic, including a French toast breakfast sandwich and a chorizo sausage biscuit,” said Cole Thompson, chef, RaceTrac. “This fall, we’re launching our waffle breakfast sandwich. Providing enticing items has helped us maintain our morning momentum.” The 670-store chain has fresh Krispy Kreme doughnuts delivered daily to most locations and offers fresh-baked empanadas, breakfast pizza and fresh-cut fruit. “We also started an initiative where our store teams ensure the hot case and hot food bars are full of fresh product throughout the day,” Thompson said. “With this initiative, we have CONVENIENCE.ORG

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“ Morning rush trips are up 6% versus 2020.” highlights of Fresh Food, Fast, and we continue to produce offerings for that daypart, including a one-of-a-kind new breakfast pizza with a biscuit crust, country style gravy, egg and sausage,” a spokesperson said.

seen an increase in overall sales, plus an increase in snack sales in the afternoons. It’s important to RaceTrac that our guests know they can count on us to have their favorite breakfast items ready for them when they arrive.” Last month, Dash In, the Maryland-based retailer with 50-plus locations, introduced the ‘Inside Out’ glazed breakfast doughnut sandwich, a new LTO product “to get customers excited again about the morning commute,” said Barbara Nova, director of food, beverage and retail programs. The sandwich features thin-sliced Virginia ham, a fresh egg, cracked black pepper and cheddar cheese in a grilled, inside-out glazed doughnut. It’s offered with Dash In’s traditional breakfast menu, which includes breakfast croissant sandwiches with fresh eggs, American cheese, and bacon, sausage or grilled steak; made-to-order breakfast burritos and breakfast quesadillas. At Circle K, part of the Alimentation CoucheTard family, a new program called “Fresh Food, Fast” rolled out to 1,500 locations in late 2020 and is scheduled for 2,600 more in fiscal 2022. “Our breakfast sandwich assortment is one of the

| OCTOBER 2021

GREAT UPGRADES Food and beverages are key customer missions during the morning rush, but “sales of cold and hot dispensed beverages are still lagging,” said Gabel. “Customers are spending more and often purchasing food and/or beverages during the morning rush, which suggests an opportunity to grow the basket through bundling and pairing across categories.” To ensure robust a.m. traffic, all of these retailers have updated their in-store coffee programs with new bean-to-cup equipment and are transforming customers into baristas. “I think it’s becoming table stakes,” Brennan said of the technology. “By having the capability to brew fresh whenever the guest wants, you ensure a quality cup of coffee every time. Combined with Casey’s new breakfast menu items, it’s bringing our guests fast, easy and delicious options during the breakfast daypart.” Pilot Flying J, meanwhile, touts its program as the “best coffee on the interstate.” “We have staples like Pilot House and Colombian, and we keep our selection of premium coffees fresh with seasonal flavors and LTOs,” said King. “This fall, our new autumn-inspired beverages will feature Cinnabon pumpkin spice and apple cider cappuccino, bourbon pecan coffee, apple pie cold brew and pumpkin pie spice creamer.” At the coffee bar, guests will find beverage recipes, including “a decadent apple pie a la mode which combines the apple pie cold brew with Cold Stone Creamery sweet cream coffee creamer and a pump of caramel syrup,” King said. RaceTrac adopted bean-to-cup coffee because “we believe that’s a factor in the morning coffee decision,” said Thompson. “And we don’t stop CONVENIENCE.ORG

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with having the best quality coffee. We pride ourselves on our coffee condiment bars where we feature everything from traditional creamers to Silk Almond Milk and even marshmallows, if that is what gets you going.” Circle K’s Coffee on Demand relies on beanto-cup machines that deliver the freshest cup of coffee possible. “We’ve become the largest retailer to offer 100% sustainably sourced coffee, and we’re driving interest year-round with a variety of limited time offers that enable us to flex to local markets, featuring blends that resonate regionally,” a spokesperson said. In the past spring, Circle K launched Sip & Save, a beverage subscription program. For $5.99 a month, customers can choose any one of Circle K’s dispensed beverages in any size cup every day. The offer includes coffee, tea, fountain and frozen drinks. Currently, Dash In has a bean-to-cup program in 19 stores and will double that number by late 2022. Customers can choose from seven varieties of whole beans that are ground and brewed-to-order for hot or cold coffee in less than 30 seconds. Last month, the company began heavily promoting its Coffee Club Card, which rewards shoppers with a free any-size cup of coffee after buying four cups. “We anticipate this program will be popular among customers and drive considerable units,” said Nova. No matter which daypart you’re looking at, “the fundamentals are always the fundamentals,” said Brennan. “There’s plenty of discussion about the evolution of the business and technology, but you’ve got to run clean, friendly stores and be in stock. There are a lot of unknowns about the coming months, but more than anything, you’ve got to ensure that the fundamentals are sound.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.

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A New Look at

Category

Management Advice from leading category managers on how to stay current in the shifting retail environment.

BY PAT PAPE

| OCTOBER 2021

CONVENIENCE.ORG

he COVID-19 pandemic forced merchants to rethink the way they do business, and that includes the way convenience retailers approach category management. Proven pre-pandemic strategies and tactics don’t always work when consumers hoard products, vendors can’t get merchandise and truckers don’t make timely—or any—deliveries to your store. NACS and Impact 21, its category management partner, jointly tackled that topic during a recent webinar, “Looking Through a New Lens at Convenience Category Management.” Moderated by Lucia Romanello Crater, executive vice president, Impact 21, the panel included insights from Kim James, head of the global center of excellence, merchandising and marketing, Circle K of Tempe, Arizona; Lindy Smith, senior category manager, Maverik of Salt Lake City, Utah; and Tim Young, category marketing manager for FiveStar convenience stores, which are owned by Newcomb Oil Co. of Bardstown, Kentucky. The panelists looked at category management through three lenses: • Does the customer want it? • Can my stores execute it? • Does the ROI justify it? BY THE NUMBERS At Circle K, management uses syndicated data from NielsenIQ and IRI to understand the chain’s position in the marketplace, “and we have a lot of dashboards so we can evaluate weekly category and subcategory levels and the competitive market,” said James. “Not every retailer is large enough to have that [data] internally. But you can use your supplier partners to gather that information. They have a unique view of their products and can give you great insights into how you’re performing.” Circle K also uses industry information, such as the NACS State of the Industry report, white papers CONVENIENCE.ORG

and trade journals. “Together, they give you the whole picture of what your stores are doing in the marketplace,” said James. Store visits are a good source of anecdotal evidence about your market and local shoppers’ buying

Everyone wants to get everything in, but sometimes the space just isn’t there. habits. “Circle K category managers are in the office on Mondays and Fridays. Those are meeting days,” said James. “Tuesday through Thursday, they’re in the stores—including our competitors’ stores—with

EVALUATING NEW SKUs: 6 THINGS TO CONSIDER Tim Young is category marketing manager for FiveStar convenience stores, which are owned by Newcomb Oil Co. of Bardstown, Kentucky. When suppliers approach FiveStar with a potential new SKU, Young asks them several key questions to figure out if the product will be a good fit for FiveStar: 1) W hat segment of the category does the SKU fit into? 2) What is its point of difference? 3) Which shopper segment will it appeal to? 4) How much incremental value will it generate? 5) What will be its effect on total category performance? 6) W hat is the introductory marketing effort?

OCTOBER 2021 |

our operations or supplier partners to understand what’s happening out there.” Smith advises category managers to use in-store visitation time wisely. “When you’re in the stores, what do you really do? What do you see? Ask your employees how things are working,” she said. “Are your competitors carrying something interesting you aren’t carrying? What are their customers doing? What are they buying? Are they purchasing the promotions? Were they upsold by the cashier? Make your store visits purposeful.” A weekly category scorecard can provide store operators with up-to-date information on how various items are performing. Smith shared a sample of an Anheuser-Busch scorecard that Maverik category managers have adapted for their own use. “This is probably my favorite scorecard,” she said. “It gives us a good snapshot of how we’re performing by state, by brand and by subcategory.”

BECOME A CATEGORY MANAGEMENT PRO

NACS has partnered with Impact 21 and Learning Evolution, to deliver the NACS Certified Convenience Advanced Category Management (CCACM) online training program. It combines education and certification—offering convenience retailers and supplier partners the very latest in thought leadership, practices of category management and shopper marketing. The Certified Convenience Category Manager (CCCM) series, developed by NACS, Impact 21 and Ready Training Online, teaches analytical skills to help you: Grow sales by matching the right product offer to customer needs, get more profit dollars from each square foot of store space and maximize the productivity of foot traffic in your store. Learn more at www.convenience.org/categorymanagement or contact Doug Spencer, director, NACS Solution Center, at dspencer@convenience.org.

| OCTOBER 2021

MAKE ROOM Every category manager dreams of discovering that next fly-out-the-door product that will boost sales and profits. But if that should happen, where on store shelves will you put it? When the FiveStar team does a store reset, they work to create additional space for unanticipated discoveries. “We have the flexibilty to support wings, shippers and endcaps, and we work closely with the vendor community regarding timing,” said Young. Prior to any store reset, Young likes to focus on two things: “Margin dollars—what the product brings to the table—and unit movement,” he said. “If I’ve got 75 items in the meat snacks category, and I run the numbers and find certain items are on the cut line, I bring in new items. It’s all about the data,” he said. “Everyone wants to get everything in, but sometimes the space just isn’t there,” Young said. “Make sure you really evaluate every potential new product,” Smith added. “It’s going to make money, right? If it doesn’t, it’s not worth bringing in. Remember, it’s OK to walk away when looking at new items.” THE VALUE OF LOYALTY Today, most convenience stores offer some form of loyalty program. According to NACS State of the Industry data, 57% of consumers participated in loyalty programs in 2020, a big increase over the prior year, and their shopping data can be a gold mine for the category management team. “Loyalty allows you to gather data about your customers and use that data with your vendor partners to create programs that can change shopping behaviors,” Young said. One example is the Halloween promotion that FiveStar conducted in partnership with The Hershey Company. Using loyalty program data, “we took a look at customers who had shopped the candy category in the past 42 days but for whatever reason had not come in the store for the past seven days,” Young said. FiveStar created a test group and a control group from loyalty members and then sent out a special offer for a Reese’s pumpkin standard bar. “We saw a sales lift not only during the promotion, but when CONVENIENCE.ORG

we did the post-28 days analysis the growth was a double-digit increase,” he said. Maverik frequently uses loyalty data to promote its foodservice program, Smith said. “When using loyalty, the primary objective is to retain existing customers and encourage them to buy more,” she said. “So, you want to keep the promotion simple. Define clear goals. Focus on the customer. Meet their needs, and customize those offers. Use your own data because that will tell you what customers are buying and how frequently.” OUT-OF-STOCK The pandemic created supply chain challenges, some of which still linger. But when customers come into a store, “they don’t know or care about your supply problems,” said James. “That’s where you have to become nimble finding and communicating alternatives. “Whether you’re using Nielsen data or relying on your supplier partners, be creative about what you can get and how you can add new items quickly,” she said. “Maybe you can bring in a regional SKU or find a different flavor. Empower your operators to do the right thing and take care of the customer in the best way they can.” Requirements for successful category management have changed and will continue to evolve. Managers must be fast, focused, flexible and open to new ideas. In addition, Young recommends that they continue building their professional networks with both vendors and others in their profession. “We’re all doing the same thing, and it’s really a close-knit group,” Young said. “I’m confident that I can call my category management friends and say, ‘I’m running into this issue. Have you seen it? What do you guys do in this situation?’ You’ll be surprised at how people are willing to help.”

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.

CONVENIENCE.ORG

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PROTECTING REVENUE After the EMV Deadline

Rented outdoor payment terminals are an affordable option for retailers that have yet to upgrade to EMV.

Courtney Johnson Senior Manager, Global Marketing and Business Development www.invenco.com

WITH THE EXTENDED APRIL 2021 DEADLINE BEHIND US, WHERE DOES THE CONVENIENCE INDUSTRY STAND TODAY WITH EMV UPGRADES? We are six months past the deadline, and there is still a huge amount of work to be done. Uptake has been slower than anticipated. In 2019, Conexxus reported that based on survey results, 58% of sites would not be outdoor EMV compliant before the April 2021 deadline. Conversations with brands and retailers post-deadline point to a significant portion of those sites still needing upgrades today. The characteristics of sites that still need to upgrade have stayed consistent with findings from before the deadline as well. Lower-volume, independently owned sites are upgrading at a slower rate than larger, high-volume sites. What has changed is the rising pressure from brands and credit card companies to get retailers upgraded. As of the deadline, many brands have implemented penalty fees for sites that have not yet upgraded. These fees are scheduled to increase over time as sites stay noncompliant past the deadline. Brands are also providing positive incentives to encourage retailers to upgrade. Many are offering substantial rebates on equipment purchased to meet EMV compliance. These rebates can cover a significant portion of a retailer’s site upgrade, depending on the solution they plan to implement. To increase pressure even more, MAG stripes may soon be a thing of the past. Mastercard recently announced that it will not be requiring MAG stripes on its branded credit cards in 2024, and that it plans to remove the MAG stripe completely by 2033. WHAT IS THE HOLDUP FOR MANY RETAILERS AND WHY IS PICKUP SLOWER THAN ANTICIPATED? Money! And that nobody wants to spend it. Traditional pump replacements and retrofit kit purchase programs are expensive, and there is nothing exciting about spending upward of $20,000 or $60,000—or even more—on what retailers are looking at as a compliance update or protective measure. BY NOT UPGRADING, RETAILERS RISK FACING SOME SERIOUS CONSEQUENCES, RIGHT? Yes, they do. For sites that haven’t seen fraud up until now, they are more likely than ever to start. This seems to be especially relevant for small

| OCTOBER 2021

CONVENIENCE.ORG

This interview is brought to you by Invenco, a NACS Hunter Club member.

town retailers that had known of fraud taking place in more high-traffic areas but had never experienced it themselves. It is a simple formula for fraudsters: When a site becomes EMV compliant, they head to the next one in hopes of noncompliance. This “fraud migration” is not new to the industry, but it is more prevalent than ever post deadline. To make matters even more precarious, the number of of non-EMV chargebacks has risen significantly, with CMSPI reporting a 200% increase between January and May 2021. The average chargeback transaction also has increased from $50 to $70, and more fraudulent charges are moving outside to the pump versus inside the store. Between moving, increasing and more expensive fraud, the industry is reaching a perfect storm that points to the need for sites to upgrade to outdoor EMV as soon as possible. If they don’t, retailers face the continuously escalating risk of more frequent and more expensive fraudulent charges. SO, WHAT’S A GOOD SOLUTION STRATEGY FOR A RETAILER TO GET ON THE RIGHT PATH WITH EMV UPGRADES? Rental programs. Outdoor payment terminals (OPTs) begin to lose value almost immediately after purchase. They need frequent repairs, become outdated quickly and require regular compliance updates. They are expensive to buy and expensive to own. The alternative is to rent pay-at-pump equipment. By renting, retailers can save thousands of dollars on their upfront costs to become compliant. From there, they pay a low, fixed-rate monthly fee to rent OPTs over a four-year contract. The rental fee includes full-warranty coverage for parts, labor and service, a cost that is unpredictable and increases over time with owned assets. Once a terminal is ready for replacement at the end of contract, it's upgraded to the latest terminal model. CONVENIENCE.ORG

With an OPT rental, retailers save significantly up front, don’t have to worry about unexpected repair costs and can keep their sites modern and compliant. Terminal management is a breeze, with supplier-managed software and compliance updates, a fast pop-and-swap repair model should anything go wrong, and a top-

For sites that haven’t seen fraud up until now, they are more likely than ever to start. of-line terminal with all the latest features included. With so much changing in terms of compliance, customer engagements and payment methods, it no longer makes sense to put money into owned terminals that will need frequent replacement (more money!) and hands-on management. To put things in the context of your daily life, think of outdoor payment system rental programs like a cellphone plan. If your mobile provider offered a contract where you paid a small upfront cost (think tax and setup), plus a fixed, low monthly fee that provided a top-quality mobile device, free replacement anytime the phone breaks, software and app updates managed by the mobile provider, and an upgrade to the latest phone model at the end of each contract on renewal, would you take it? We would hope so!

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Spiked slushies attract new customers and lift margins. BY TERRI ALLAN

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For the past few summers, adult customers at Rutter’s stores in Pennsylvania have discovered unique and fun solutions to their refreshment needs. The chain’s spiked slushie program—frozen drinks topped off with flavored malt beverages or wine—has become so popular that some Rutter’s locations now offer up to 16 different options. “The move into spiked slushies has been a huge success,” said Chris Hartman, director of fuels, forecourt and advertising. “It’s given our chain another point of differentiation.” Spiked or adult slushies in c-stores in some markets are indeed having their moment. “We’re seeing increased interest in these products from c-stores in areas where they’re legal,” remarked Chris Wurtzel, strategic account manager at Bunn-O-Matic Corp., which markets frozen dispensed beverage equipment. Demand particularly soared last year at the height of the COVID-19 pandemic, as closed bars and restaurants left many consumers craving adult frozen concoctions. “Adult slushies have put c-stores in the frozen margarita space,” said Larry Galley, senior category manager, fresh foods, at GetGo, which has been selling spiked slushies since 2019 and now offers them in 43 Pennsylvania stores and 12 Ohio locations. In Pennsylvania, spiked slushies—which first appeared in the state’s beer distributor channel several years ago and then quickly spread to c-stores—have grown to become a phenomenon. “Adult slushies hit Pennsylvania fast and furious,” noted Paul René, vice president, U.S. operations, at Geloso Beverage Group, marketer of the Clubtails line of flavored malt beverages often featured in the drinks. “For c-stores, they were a newfound opportunity and appealed to new legal-drinkingage consumers.” KEYSTONE STATE SURGE Spiked slushies at Rutter’s are now available at 42 Pennsylvania locations where beer and wine are also sold. According to Hartman, the majority of locations carry 10 flavors—priced at $4.99 for a 20-ounce serving (a 20-ounce pour of a Spiked Frosé runs $7.49) up to $24.99 for a 128-ounce party bag—but some stores offer as many as 16 expressions. While CONVENIENCE.ORG

options are rotated throughout the year, popular flavors include Spiked Jamaican, featuring Seagram’s Escapes’ Jamaican Me Happy, and Spiked Blue Razz, comprised of Molson Coors’ Steel Reserve Spiked Blue Razz. To promote the frozen drinks, Rutter’s employs TV commercials, digital advertising and in-store signage, including a flavor board by the checkout. “We plan to expand the program,” Hartman said, noting that Rutter’s is looking to add licensed beverage locations throughout its market. At GetGo, where spiked slushie options range from four to eight flavors, top sellers include those featuring TGIF’s Long Island iced tea, Jamaican Me Happy and Mike’s Harder lemonade, Galley said. The adult slushies are priced at $4.99 for 20 ounces and $7.99 for a 32-ounce serving. The drinks are promoted via both inside and outside signage, as well as on social media. Galley said the products have been so successful that GetGo would like to roll them out to the other states where it operates “when we legally can.” Dandy c-stores, meanwhile, have promoted adult slushies for the past year, and according to Jesse Dix, category manager, “response has been very positive.” Available at 11 Pennsylvania locations, the adult

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Adult slushies have put c-stores in the frozen margarita space.

slushies are priced at $5 for 20 ounces and $16 for a 64-ounce growler bag. Two to four flavors are typically offered, Dix said, and top sellers include those featuring brands like Mike’s Harder, Jamaican Me Happy and Steel Reserve Blue Razz. Sheetz is among the other Pennsylvania c-store chains offering spiked slushies. The closure of bars and restaurants at the height of the pandemic last year helped to fuel demand for spiked slushies, retailers and vendors said. “COVID helped to marry the newness of these drinks with demand for drinks that were no longer available from on-premise establishments, resulting in a flow of new customers to c-stores,” René noted. Indeed, at GetGo, sales of spiked slushies doubled from April 2020 to July 2020, Galley reported, as “consumers wanted that frozen cocktail experience.” Demand remained strong this summer too, the retailer said, with some GetGo stores selling between 200 to 500 units a week. IMPULSE SALES DRIVER In most cases, flavored malt beverages are simply added to the mix in the hopper of frozen dispensed machines to create spiked slushies. According to Kevin Kraft, channel director at FIFCO USA, the marketer of the Seagram’s Escapes line, typically 10 23.5-ounce cans of the product are added to a single bay of the machine to yield about 16 servings. Malt beverages containing at least 7% alcohol by volume work best, he added. The freezing process can take up to one hour. Spiked slushie offerings, where legal, carry many benefits, retailers and vendors said. “They provide incremental sales and the opportunity to drive traffic,” remarked Kraft, and the fact that sales peak between 4 to 6 p.m. “fits into the all-important c-store drive time.” Galley noted that adult slushies “bring in certain customers who may not have come in before, and those customers often pick up other products that help build the basket.” René added that the drinks provide retailers with a unique proposition. “These are products that mass merchandisers don’t offer,” he said. High margins are also a strong attribute. “Most beer sold out of the cold box carries a 25 to 35% margin,” noted Wurtzel. “These products are at least double that.” Moreover, Brad Cliburn, director of product strategy at Bunn-O-Matic, added that the frozen nature of the products yields a 5-10% overrun, further buffeting margins. Dix confirmed the profitability. Dandy typically makes a 25% margin on a single of Mike’s Harder, he noted, but with an adult

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ALCOHOLIC SELTZERS GET NEW CATEGORY New NACS category definitions take effect in 2022, and “Alcoholic Seltzer” is a new subcategory in Beer. The NACS Category Definitions & Numbering Guide–Version 8.0 reflects current market conditions and marks the first major update since 2010. NACS Research added 11 new subcategories to the guide to better align with changes in the convenience and fuel retailing industry. These common category definitions are a key part of the CSX database, the dynamic, self-reported subscription database that serves the convenience and petroleum marketing industry and its stakeholders. For questions on category classification, contact Jayme Gough, NACS research manager, at jgough@convenience.org. Download Version 8.0 at www.convenience.org/categorydefinitions.

slushie, “we’re more than doubling our margin.” In Wyoming, liquor-based slushies have been popular for some time. The upscale Bodega convenience store in Jackson Hole has offered its “sloshies” for nearly a decade, according to Neil Loomis, beverage director at parent company Fine Dining Restaurant Group. Bodega offers six options, priced at $7 a 16-ounce serving, inspired by cocktails, such as the Moscow Mule, whiskey sour and gin and juice. “Sloshies are big throughout Wyoming,” Loomis said. “People love them. They’re unique and thirst quenching.”

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RESPONSIBLE SERVICE While spiked slushies are relatively new products, retailers said that when it comes to responsible sales practices, the drinks—which are served by team members and not self-serve—are no different than beer and wine. “With any age-restricted product, we understand the responsibility that comes with the privileges of selling these products,” remarked Hartman. “Extensive training and operational procedures are developed and closely monitored to ensure that we are following the law. For all alcohol purchases, customers must present an ID before they can complete the purchase. In terms of spiked slushies, we require this before pouring the product.” Kraft added that in Pennsylvania, at least, the frozen drinks must be sold with a sealed lid. Like any emerging product, adult slushies are not without their challenges. Demand skews toward warm weather months, for example. But operators like Rutter’s have begun promoting seasonal variants, such as the Spiked Shamrock in March, to consumer delight. The right equipment—and proper maintenance—are also vital to a successful spiked slushie program, vendors noted. Cliburn advised weekly cleaning of slushie machines, as well as ongoing wiping down of condensation. Marketing and merchandising the drinks is also necessary, added Kraft, pointing to tactics like signage on beer coolers and the use of digital billboards. While spiked slushies are currently limited to specific markets, retailers and suppliers agreed that they have the potential to expand if regulations allow. Galley doesn’t believe the drinks are merely a fad. “I think they’re here to stay,” he said. “After all, frozen alcoholic beverages have been around for a long time.” FIFCO’s Kraft encouraged retailers in markets where the drinks are legal to consider them. “Today, there can be so few incremental opportunities,” the marketer said. “Adult slushies offer a point of difference.”

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

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SAFE K | OCTOBER 2021

BY JERRY SOVERINSKY

SECURE

alpesh Patek had a problem. As the sole owner of a Southern California gas station, his work was never ending— certainly far more than a full-time job. He faced a cascade of tasks each day, none more important than managing cash. But for the veteran fuel marketer, the cash management process had been fraught with challenges. Sure, he could tackle the chore himself, but as a multistore owner, he was like the proverbial worker bee in the midst of a nonstop buzz of activity who had to react to any number of problems that might arise each day—on site and off—making his availability

Digital safes streamline cash management tasks while enhancing security and accountability.

unpredictable at best. And cash management was a daily priority. Delegating the task, though, carried its own challenges. His few employees were on the honor system and carried little accountability when transferring cash from the register drawer to the store’s “dumb” safe in a back room. Not to mention, the process for his streamlined operation took up valuable time—a scarce resource. He prioritized finding a solution to automate the time-consuming manual cash management practices, one that would incorporate both security and accountability. “Ideally, the solution CONVENIENCE.ORG

This article is brought to you by American Security, a NACS member.

would allow me to manage all aspects of the cash we take in from a remote location, such as my off-site office,” he said. “This would free up more of my time each day and allow me to focus on my other businesses.” After much searching, he joined an expanding group of retailers who have found help—and security—with a smart safe. SAFE HANDS “Smart safes have really grown with the convenience store industry in the past 10 years,” said Rony Ghaby, director of operations for SecTran Security Inc., a cash-in-transit (armored truck) company. “It’s the perfect solution for retail locations that handle cash.” A smart safe automates many of the daily time-consuming cash management tasks, such as cash counting and transfers to a store safe. Additionally, it provides the transparency that time-strapped operators like Patek look for when overseeing operations, allowing them remote access to how much cash is handled daily— without fear of miscounts, counterfeits and internal theft. It’s quickly becoming the de facto solution for operators who need an improved cash management process. “Patek is one of 200,000-plus smart safe owners now in the U.S.,” said Donny McKay, vice president of marketing and engineering for American Security, one of the longest-established U.S. custom safe manufacturers. With more than 75 years of experience designing and building high security safes for businesses and residences, American Security entered the smart safe business in 2013 with its CashWizard™ safe, the model that Patek chose for his stores. The CashWizard safe hit all the key areas that Patek was looking to address, as well as a growing industry issue: shrink. “The smart safe market is critical to combating shrink, a problem for all businesses,” McKay said. “Smart safes help operators gain efficiency. It comes down to hours and accountability. Traditionally, when people take cash, they put it in the till, the till gets full, a CONVENIENCE.ORG

manager takes the money to a back office multiple times a day and then prepares a deposit at the end of the day. Now cashiers are putting the deposit directly into the Smart Safe. SAFE BET For The Halal Guys, a popular New York chain of 30 Middle Eastern restaurants, theft was a major concern of its existing cash management process. “Previously, our cash count was wrong, but we couldn’t determine why,” the company said. “Was it due to human error? Manager fatigue? Was someone stealing? Our traditional safe gave us zero cash management oversight.” By transitioning to CashWizard, the restaurant eliminated the need for managers to count and verify bank deposits by hand, as well as sharply reduced the number of people who had access to the money on hand. We now have “heightened security and more hands-on, clear-cut visibility. The improved efficiency has saved time and money, and everyone likes that, including the investors.” SAFE SPACE Using a smart safe like CashWizard to manage cash management is streamlined, secure and efficient. Users log into the safe to activate its functionality, after which cash can be fed directly into it for processing. The unit reads and counts the currency, even flagging counterfeit notes. Those figures are then transmitted wirelessly to the user’s bank, providing the retailer with nearly instantaneous access to the funds. “As long as a banking relationship is involved, the bank will provide the retailer with provisional credit based on a day’s worth of deposits,” Ghaby said. “For instance, if you deposit $2,000 into the safe on a given day and midnight is configured as the end of day for your store, the safe will transmit a file that contains a breakdown of the funds that are in the safe to the bank. The bank will then review the file the next morning and put those funds into the retailer’s account to use.” The bank is willing to provide the daily credit because of the reliability of the smart safe. “The

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safes contain an internal validator that scans and counts bills,” Ghaby said. “It gives the bank assurances that the money is in the safe, which is secured from the customer. The only entity that can open the safe is an armored car company.” For armored car companies like SecTran Security Inc., the smart safes have sharply reduced their retailer interactions while speeding access to cash. “Without smart safes, we might schedule three days per week service with a retailer,” Ghaby said. “We’d pick up their deposits and transport them to a bank of choice. But smart safes have reduced the necessary frequency to maybe one or two days per week. That increases efficiency for the retailers, allowing them to do other things. At the same time, the revenue is the same.” If the process sounds too good to be true, for those unaware of the technology, it’s simply a matter of education. “Resistance from retailers is less and less,” said Gaby Widenor, head of business development for Cash Connect, which manages back-end support for smart safes, including the armored carriers that service them. “This is growing 45% per year, because the merchant sees an opportunity to digitize cash and get same-day access to their bank account.”

SHRINKING SHRINK Smart safes help reduce retail shrink—a growing problem for retailers, said Donny McKay, vice president of marketing and engineering for American Security. “Employee theft is a huge threat that can undermine the profitability of a business. By taking proactive actions and having the right training and systems in place, such as a smart safe, retailers can help reduce their overall annual shrinkage by a large margin.” According to the National Retail Federation, store shrink in the U.S. totaled $61.7 billion in 2019, more than a 20% jump from 2018 ($50.6 billion). Employee theft constitutes a growing problem, with retailers apprehending 560 employee thefts annually. 98

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SAFE SIDE With most smart safes, retailers can also access a robust online dashboard that provides complete transparency of all transactions, with rich, detailed reports that can be used for tax reporting, too. “The entire process is automated and precise, eliminating potential bank charges that are associated with miscounts,” McKay said. “As a result, it provides complete transparency and accountability.” “My employees love the safe,” Kalpesh remarked. “Nobody likes to count cash, and the CashWizard Smart Safe helps automate a good portion of their job. With the Tube Vend Dispenser solution, they can dispense their own change directly from the safe. This allows a single person to run the entire gas station and a convenience store without the need for a manager or myself to be on-premises.” SAFE HOUSE In addition to American Security, there are several high-profile vendors that offer smart safes and smart safe solutions. As you consider your options, you may find it helpful to distinguish their capabilities and standards. “Look carefully at the construction and security features,” McKay said. “What is the thickness of the steel? What is the hardness of the steel? Are there anti-pry features or dead latch locks? Does the safe tie into your burglary system? There are big differences in how safes are constructed, and this is critical when deciding on which one to put in your operation.” Whichever solution you settle on, you’re likely to see an immediate improvement in store efficiency and cash flow, two key components to operational success. “Times are changing; it’s important to future-proof your business,” McKay said. “Smart safes can help.” Jerry Soverinsky is a freelance writer and NACS Magazine contributing writer. See his work at www.jerrysoverinsky.com.

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Convenience Customers and

Sustain BY JERRY SOVERINSKY

It wasn’t long ago when “corporate directive” and “sustainability” would have found themselves in the same sentence, only if that sentence went something like: There will never be a corporate directive to pursue sustainability. Times have changed. Shoppers are no longer just consumers. They’re global citizens, continually evaluating corporate behavior to ensure alignment on their environmental, social and governance (ESG) priorities. For convenience store retailers, the movement’s connection to the industry may appear tenuous at best. After all, a store that helps power internal combustion engines is delivering a de facto environmental contaminant but one demanded by necessity. Surely consumer scrutiny will bypass their efforts—or not.

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In a proactive effort to assess consumers’ expectations of convenience store operators on issues of sustainability and social responsibility, the NACS/Coca-Cola Retailing Research Council (CCRRC) engaged Shelton Group to conduct market research and offer recommendations for operators seeking to deliver the most impactful programs, actions and communications to reach consumers. The NACS/CCRRC has a history of understanding and developing practical responses to strategic challenges. Known for providing key industry research, the group identifies the big issues facing convenience retailers and commissions industry research. Since its establishment in 2000, the NACS/ CCRRC has helped hundreds of retailers apply its tools to enhance various elements of their store CONVENIENCE.ORG

ability

The NACS/Coca-Cola Retailing Research Council reveals insights on how a store’s sustainability practices influence customer loyalties.

operations—from growing basket spend among existing customers to broadening their customer base by tapping new business segments. TIMELINESS This year’s study could not have come at a better time, according to CCRRC leadership. “COVID-19 has created both challenges and opportunities for convenience store operators in regard to sustainability,” said Michael Sansolo, research director of the NACS/CCRRC. “During the pandemic, shoppers, our surveys found, viewed local convenience stores as an increasingly central part of their community and an essential retail establishment. But that also means they have a heightened expectation of the role convenience stores play on a wide range of social issues, including sustainability.“ CONVENIENCE.ORG

Exactly what those expectations are and how retailers can best incorporate them form the basis of the report entitled, “Convenience Store Customers and Sustainability: The Journey to Creating Brand Ambassadors.” THE SURVEY Over the course of seven months, from February to September 2020, Shelton Group conducted a quantitative survey of both frequent and infrequent convenience store customers from various regions and demographics to understand the role sustainability played in their convenience store shopping routine. Using a dedicated research app, Shelton solicited feedback on several sustainability-related issues, including whether the stores frequented provided cues that they were pursuing a sustainability initiative.

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Social

72%

of frequent shoppers say a company's involvement in its community, social issues or its nonprofit partnerships and donations has a moderate to very strong impact on purchase intent.

Tapping frequent customers was considered particularly instructive, as these are the shoppers who visit a preferred store three or more times per week and revealed a strong preference for stores that implemented ESG initiatives. In the survey, 64% of respondents reported that they are more likely to promote their favorite store to others and are informed about the store’s initiatives. THE AUDIENCE The study categorized frequent convenience store shoppers in four categories according to their level of understanding of sustainability issues.

Read the Report Access “Convenience Store Customers and Sustainability: The Journey to Creating Brand Ambassadors” at www.ccrrc.org. The tool provides a starting point and recommended steps to help operators better meet shoppers’ expectations of sustainability. For further information on sustainability, the NACS Sustainability Playbook highlights where retailers can take credit for initiatives they are doing well and identifies opportunities to do more. NACS encourages retailers to use the playbook as a guide for advancing the areas most relevant to their business today and consider how other areas could transform their business in the future. Access the playbook and more sustainability resources at www.convenience.org/sustainability.

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shoppers look for:

* Visible health & safety program in store * Employee happiness * Living wage for employees * Evidence of diversity, equity & inclusion * Charitable giving & local sponsorships

The categorizations are critical for retailers seeking to engage customers on sustainability messaging. The categorizations are not static but indicate a progression of engagements, or journey: No engagement with sustainability

• Basic: Concerned primarily with business ethics . Data privacy and safety dominate their concerns; sustainability is not part of their focus.

Engaged with sustainability

• Beginners: Comprised of 23% of frequent convenience store shoppers, these visitors are focused on social concerns and want to know that a convenience store is helping the community it serves. • Deciders: Comprised of 45% of frequent convenience store shoppers, these visitors care about the same issues as beginners but with an additional focus on the products they purchase as they relate to environmental impact. • Involved: The remaining 32% of shoppers have an active interest in environmental issues. They seek retailers that have implemented programs to reduce their carbon footprint and conserve energy.

It’s important to provide context for these preferences, which requires an understanding of awareness levels of various sustainability practices.

CONVENIENCE.ORG

Products

80%

of frequent shoppers feel a convenience store should have moderate to total responsibility for the packaging waste generated by the products they sell.

shoppers look for:

78%

of frequent shoppers feel personally responsible to change their daily habits and purchase practices to positively impact the environment.

* Products made in the U.S. * Sustainability certifications on packaging * Recyclable packaging * Recycling bins

Twenty-six percent of consumers don’t know whether their store has social initiatives, while 6% know if their store does not have initiatives. Forty-two percent of consumers don’t know whether their store has environmental initiatives, while 10% know that their store does not have initiatives. ACTIONABLE INSIGHTS No matter the size of operation, retailers will find relevant information throughout the report that’s easy to follow, whatever the current stage of their sustainability journey. “Retailers of all sizes can examine those steps to determine how best to engage on this topic,” Sansolo said. Don’t feel pressure to adopt all changes, though. Sustainability joins a long list of operational priorities for retailers. “Sustainability strategies and goals can mean different things to different companies of all sizes. Our advice is to identify the metrics your company wants to measure, why you want to measure it and create goals that your teams can work toward,” said Lori Buss Stillman, NACS vice president of research and a member of the NACS/CCRRC.

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The key is to understand the impact of your actions and ways to reach and engage your target customers. From there, you can balance the ROI (not measured strictly in financial terms) and whether the tactics are practical for your unique circumstances. High-impact quick wins include those steps that have an immediate impact on frequent customers, such as: • Two-thirds of customers said that providing hand sanitizer, requiring masks and encouraging social distancing during COVID-19 had a moderate to strong impact on store preferences. • Diverse hiring demonstrates a commitment to the community. • Giving back, such as encouraging employee volunteerism and monetary donations to charities, communicates neighborhood involvement. There are several steps retailers can take to enhance sustainability efforts and increase store and brand loyalty. • Energy consumption: 47% of Beginners and 65% of Involved customers would promote a store if they knew it uses energy-efficient lighting.

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OUR FAMILY OF PRODUCTS

©2021 Energizer. Energizer, Eveready, Rayovac, Energizer Bunny design, and certain graphic designs are trademarks of Energizer Brands, LLC and related subsidiaries. Driven, Armor All, AC Pro, Tuff Stuff, Refresh Your Car, California Scents, STP, Bahama & Co., NuFinish, Lexol and Eagle One are trademarks of Energizer. ©2021 Jelly Belly Candy Company. JELLY BELLY® is a registered trademark of Jelly Belly Candy company, used under license. AXE™used under license from Unilever. © 2021

Environmental

68%

of frequent shoppers say a company's environmental reputation has a modrate to very strong impact on purchase intent. • Product certification: 50% of Beginners and 65% of Involved customers said they would promote a store if it offered products with sustainability certifications (Fair Trade, etc.). Recycling has a moderate to very strong impact on store choice among more than half of consumers. According to an Eco Pulse Wave survey, more than 70% of Americans feel moderately to strongly responsible to modify their behaviors to positively impact the environment. To align with customer recycling concerns, the report recommends: • Offering products in recyclable packaging • Offering refillable cup and mug programs • Implementing food waste programs • Providing recycling bins inside the store and at the pump A long-term sustainability effort also includes less impactful initiatives that generate a sense of trust among convenience store shoppers with a particular brand. Steps in this grouping include: • Installing electric vehicle chargers • Stocking more sustainable products SPREAD THE WORD Whichever steps adopted, it is important to communicate actions clearly and effectively to maximize consumer awareness and loyalty. “Be ready to tell the story about what your company is doing. Customers want to know that your business supports its employees, customers and the community,” Stillman said. Talking with customers in their preferred channels, for instance, can help shape your

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shoppers look for:

* LED lighting * Energy efficient coolers * Renewable energy sourcing messaging while generating connections with your brand. To accomplish that, consider leveraging your loyalty program and its database of customer contact information to reach your consumers, crafting messaging that details your efforts. Additionally, most efforts will require an active and robust online presence, though involvement comes at a time and resource cost. FINAL WORDS While previous CCRRC reports focused on store fundamentals as critical to success, they are no longer the sole competitive differentiators, Stillman said. “Today’s customers are looking for companies with a purpose.” And for that, sustainability initiatives, when communicated clearly, can be a compelling selling point. “Convenience stores are essential businesses because of what they do and not just what they sell,” Stillman said, quoting Don Rhoads, vice chairman of the NACS legislative committee and president and CEO of Vancouver, Washingtonbased The Convenience Group. “Insights from this report can help retailers tell their sustainability story and deliver a message of purpose and service to their communities,” Stillman said. Jerry Soverinsky is a Chicago-based freelance writer and NACS Magazine contributing writer.

CONVENIENCE.ORG

MAPPING

INNOVATION Convenience retailers with longer-term tech roadmaps are more likely to focus on customer-facing initiatives. BY KIM STEWART

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echnological change happens fast, and for convenience retailers, prioritizing which innovations to seize—and which to bypass—is yet another challenge in the race to stay ahead of the competition, especially as the pandemic forced quick shifts in operations and services to meet customer demands. What was important before the pandemic, for instance, implementing technology to support loyalty rewards programs, in many cases has been overtaken by newer customer-facing initiatives like omnichannel shopping and enabling contactless payments to speed in-person checkout. NACS Research surveyed convenience retail technology leaders this past spring to gather feedback on these challenges and the current landscape of convenience retail technology. The results and recommendations are shared in a white paper, “Building Convenience Retail Success Through Technology,” available at www.convenience.org/research. The findings help retailers set priorities for implementing specific technologies based on convenience retailer business impact ratings.

Benchmarking helps identify whether your company is ahead or behind other retailers in adopting certain technologies, understanding what to consider before implementing a technology and initiating the request for proposals for new technology providers. “Having a technology roadmap for the future is crucial in setting priorities and understanding what comes next to ensure that technology plays a pivotal role in the success of your business,” said Lori Stillman, NACS vice president of research. “Our survey found that retailers with a technology roadmap that plan at least three years ahead are more likely to allocate resources to customerfacing initiatives and less likely to require reactive pivots in the face of sudden business and economic environment shifts like COVID-19.” Nearly one in five convenience retailers do not have a formalized technology roadmap, the NACS survey found. Forty-four percent of retailers surveyed indicate their technology roadmap extends two to three years. Not surprisingly, companies with established technology roadmaps “reaped the benefits of planning and evolved their roadmap for what comes next after the pandemic,” Stillman said. These companies were more likely to already

Companies That Implemented a Technology in the Past Two Years Solved Customer Demand for… Do not have the right technologies in place to meet future business/market demands Have the right technologies in place to meet future business/market demands

80% 60%

65% 46%

40%

60% 42%

40% 20%

20%

25%

38%

0% Loyalty reward points/benefits Source: NACS Research

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Making payment fast/easy

An integrated experience at the pump, in-store, on mobile device

A fast in-store shopping experience

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iStock.com/andresr; Kwangmoozaa

Percentage agreement with statement

100%

HEADING H TO THE 2021 NACS 20 SHOW? Relax and recharge at booth #1739.

have implemented remote work capabilities, contactless payment and mobile ordering at the pump and in-store and a disaster recovery plan. Having these key elements in place helped to limit business disruptions compared with retailers who needed to scramble to adjust to new operational demands. NACS research examined the convenience retail technology landscape across six categories encompassing 41 distinct technologies to determine: • Implementation stage (embedded, adopting or exploring) • Level of difficulty in implementing • Perceived level of impact on business • Considerations for technology provider request for proposals (RFPs) Sixty percent of convenience retailers surveyed believe they have the right technologies in place today to meet future business and market demands, and among these, implementing shopperexperience-related technologies rises to the top. Just 25% of convenience retailers surveyed said they allocate the bulk of their tech spend to customer-facing projects. Many convenience retailers are underleveraged when it comes to customer-facing and payments technologies, which survey respondents considered the most difficult to implement. These include such technologies as automatic—and anonymous—age verification, just-walk-out technology and personalization.

And in the payments space, cryptocurrencies and alternative fintech, such as Venmo and PayPal, have low adoption rates. Still, retailers surveyed are rapidly adopting contactless payments and pay by mobile apps because they view them as having high potential business impact. These technologies can free up store staff to spend more time on customer-facing activities to enhance the in-store experience. At least 60% of tech spend should go to improving the shopper experience and building customer demand, the report recommends. Back-office technologies, meanwhile, have captured more attention from retailers who regard them as having the biggest impact on operations. Amid ransomware attacks and other cybercrimes, retailers are prioritizing investments in cybersecurity technology. Although the technology is difficult to implement, retailers recognize its high business impact, the survey indicates. Among other findings, retailers said COVID-19 sped their adoption of last-mile fulfillment ordering, a technology they consider challenging to implement. Facing a labor shortage, retailers consider technology to help train and onboard store team members as having high business impact and are currently in the “adopting” stage. Foodservicerelated technologies also are in the adopting stage and rated by respondents as having a moderate business impact.

State of Technology IN THE NEXT TWO YEARS, DOES YOUR COMPANY PLAN TO IMPLEMENT TECHNOLOGIES THAT COULD SOLVE FOR ANY OF THE FOLLOWING OPERATIONAL CHALLENGES?

112

Percentage

Making inventory management less manual

48%

Allowing store staff to spend more time on customer-facing activities

48%

Maintaining cybersecurity/regulatory compliance

40%

Maintaining stock of in-demand products

30%

Creating a more seamless supply chain

27%

Auto updating price book changes vs. manual tablet inputs

27%

Making store(s) “findable” by customers searching for something

26%

Remote updates to order-taking/selection boards

26%

None of the above

11%

| OCTOBER 2021

CONVENIENCE.ORG

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Technology Adoption IN THE NEXT TWO YEARS, DOES YOUR COMPANY PLAN TO IMPLEMENT TECHNOLOGIES THAT COULD HELP WITH ADAPTING TO CUSTOMER DEMAND FOR...? Making payment fast/easy

53%

Contactless shopping experience/interactions

51%

Online/mobile shopping experience

49%

A fast in-store shopping experience

44%

Loyalty reward points/benefits

40%

An integrated experience at the pump, in-store, on mobile device

39%

Last-mile fulfillment (delivery, curbside pickup, drive-thru, etc.)

32%

Personalized product suggestions/promotions/discounts

30%

An informed product selection experience

17%

None of the above

13%

Download “Building Convenience Retail Success Through Technology” at www.convenience.org/research to discover: • Top three areas retailers want to address via technology • Top three operational challenges retailers want to address via technology • Which 10 of 41 technologies have the biggest disparity between business and implementation maturity • And more You can also download the Convenience Retail Technology Implementation Mapping & RFP Guide—a benchmark on the current landscape of tech adoption and what retailers should consider when scoping for their next tech provider and building a technology RFP. The technology adoption analysis is presented as a radar graphic that covers the implementation progress, business impact and implementation difficulty for 41 technologies across six key categories.

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Percentage

| OCTOBER 2021

When it comes to technology RFPs, NACS researchers identified key areas for retailers to consider when evaluating technology providers: •S ecure internal buy-in first before scoping possible vendors •E stablish KPIs for technology implementation deployment success metrics •R esearch potential providers and vet strategic, cultural and technology alignment •E valuate provider risk, certifications, security, data architecture and data ownership •D etermine provider fit to current and planned solutions The analysis is based on a total of 104 responses from convenience retail technology leaders representing over 35,000 store locations globally who took part in the NACS Convenience Retail Technology Survey, conducted from April to June 2021. In the survey, 83% of responses were from the United States, and the remaining 17% were from Australia, Central America, Europe, South America, Southeast Asia and the Middle East. Kim Stewart is editor-in-chief of NACS Magazine and editorial director of NACS. Contact her at kstewart@convenience.org.

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Visit us at Booth 1659

Getting the candy subcategory of gum and mints back on track.

PAT PAPE

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There has been much controversy over wearing masks during the pandemic, but whether you’re pro or con, there’s one thing everyone can agree on. Masks serve as a convenient cover-up for bad breath, a problem solved with gum or mints before the pandemic. As a result, masks—along with months of social distancing—took a big bite out of the gum and mint subcategory last year, and manufacturers are working to generate more sales. “For 2020, gum was 10.7% of category sales, down from 14.3% from the previous year,” said Jayme Gough, research manager, NACS. “This makes a lot of sense from what we’ve heard. Gum had a major dip in 2020 and never recovered to 2019 levels. A lot contributing to that was the fact that there were fewer commuters, less people traveling and fewer public events—just less face-to-face communications in general.” For 2021, gum sales are up somewhat but “not yet over 2019 or 2018 levels,” she said. In May, pack unit sales were up by nearly 15 million, compared with January 2021, according to NielsenIQ. Meanwhile, gum prices have risen, with the average retail price for a pack of gum at $2.11, up from $2.05 in early January, reports Bloomberg. Other breath-beautifying SKUs saw similar sales results in 2020. “Rolls, mints and drops made up 4.3% of category sales last year, down 5.6% from 2019,” said Gough. RETURN TO FRESH BREATH This spring, as mask mandates and other COVID-related restrictions were lifted, many old consumer habits returned, with gum and mint sales on the upswing. “We know 50% of gum usage takes place on the go to freshen up before social occasions. But with social interactions hindered during the pandemic, the gum category faced challenges,” said Jim Dodge, vice president of convenience, Mars Wrigley. “However, as pandemic restrictions lift, we have already seen gum sales bounce back, according to NielsenIQ. The category is up 8.8%.” Gum manufacturers are putting extra focus on the subcategory by rolling out convenient bulk packages. This year, Mars Wrigley, which has two-thirds of the regular gum market and 53.54% of the sugar-free gum market, according to IRI, introduced the 30-piece Orbit Gum Mega Pack. The back of the pack provides a

CONVENIENCE.ORG

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Sales of gum, rolls, mints and drops have recovered from 2020 but are still short of pre-2020 results GUM

2018

2019

2020

2021

$700

$600

$500

$400

$300 JAN

FEB

MAR

APR

MAY

JUN

ROLLS, MINTS, DROPS

JUL

AUG

2018

SEP

OCT

2019

NOV

2020

DEC

2021

$250

$200

$150

$100 JAN

FEB

MAR

APR

MAY

JUN

step-by-step guide to recycling each part of the empty package, a feature that environmentally conscious customers will appreciate. Mondelēz North America recently released the Trident Pocket Pack with 28 pieces, and Ferrero North America offers 40-piece bottle packs. In early 2022, Mentos Pure Fresh Gum will be available in a new, more sustainable, paperboard bottle containing 80 pieces, with a suggested retail price of $4.99. “Through the pandemic, we’ve found that consumers were stocking up with larger pack sizes, and this shift has helped boost sales of our bottle packs this year,” said Noah Szporn, senior vice president, sugar confections, Ferrero North America.

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JUL

AUG

SEP

OCT

NOV

DEC

While chewing gum helps refresh a stale mouth, Dodge notes that it does far more than that. According to scientific research conducted by U.K. researchers and available from the National Library of Medicine, the world’s largest biomedical library, chewing gum also is associated with enhanced productivity and reduced cognitive errors on the job. MINTY REFRESHMENT In addition to gum, consumers are once again reaching for mints. According to IRI, “Tic Tac sales are up over 16% versus the prior year and outpacing the category overall, which is up about 4%,” said Szporn. “I think the overall category is up because people are more interested in a refresh CONVENIENCE.ORG

HUMBLE BEGINNINGS The next time you enjoy a stick of gum, you can thank General López de Santa Anna, the military leader who served 11 terms as president of Mexico and defeated Texan insurgents at the Battle of the Alamo. In the 1850s, Santa Anna traveled to New York with a shipment of chicle, a natural gum harvested from trees. He hoped to sell it for use in buggy tires, but that plan failed. Instead, Thomas Adams, the American assigned to escort Santa Anna while in the United States, purchased the material and eventually used it to launch the chewing gum industry and create a product known as “chiclets.”

when they get together with others, and also we’re seeing people on the move a bit more.” Chewing gum, along with other breathfreshening products, is typically an impulse purchase, and traditionally, those items move best when merchandised at checkout and other well-positioned areas in the store. But for the past 18 months, many consumers have shopped online for the merchandise they need, a practice that crimps impulse buys. According to PowerReviews, a technology and research company, 31% of respondents in a recent survey said that one reason they like online shopping was that it helps them avoid unplanned purchases. “With mints being an impulse purchase that don’t always make it onto a shopping list, consider cross-merchandising them near products that consumers are likely to purchase with mints,” said Szporn. That could include anything from flavorful snacks to coffee and sodas. And as major end-of-year holidays approach, remember to keep shelves well-stocked, manufacturers advise. “C-store retailers can create mini destinations in high-traffic locations within the store to drive awareness and create a one-stop seasonal shop,” said Dodge. “For example, with Christmas coming up, retailers can provide fully designed Christmas displays surrounded by all the items shoppers choose for gifting and celebrations. Mars Wrigley also recommends that retail partners purchase their seasonal offerings for sell out versus sell through to minimize the impact of residual inventory and markdowns,” Dodge said. “We’ve seen consumers across confection categories make a special effort during holidays and other important moments,” Szporn added. “Tic

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| OCTOBER 2021

Tac holiday sales for 2020 were up 167% versus holiday 2019, as families looked for fun stocking stuffers at affordable price points.” To help get the category back on track, manufacturers have promoted the benefits of gum and mints. In May, Mars Wrigley released a TV commercial touting Extra Gum. “For When It’s Time” was part of a global campaign illustrating the bleakness of COVID-19 before transitioning to a spirited return to normalcy that includes chewing gum again in anticipation of long-awaited social situations. Last year, Hershey rolled out its #MintBefore YouMask, a lighthearted campaign for Ice Breakers mints. The message thanked the public for wearing protective masks while communicating the brand’s message. As part of the promotion, the company distributed “goodwill packages,” which included packages of Ice Breakers, to various health-care institutions and first responders around the country. “The gum and mint category is resilient, and it continues to be an important product offering that consistently represents increased basket sizes,” said Dodge. “As people resume their daily activities, they have more reasons to reach for gum and mints for moments when they crave a special treat during activities like road trips, family gatherings or sporting events.” Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.

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ON THE

A shortage of truck drivers has carriers tapping into a diverse talent pool. BY STEPHEN BENNETT

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| OCTOBER 2021

CONVENIENCE.ORG

iStock.com/davidf; Jag_cz; RichLegg

hat’s to be done about the truck driver shortage? In a male-dominated profession, one answer may be recruiting more women. Carriers are trying to appeal to a more diverse demographic with a message about quality of work-life balance to shore up the driving ranks. Recognizing the need for more female drivers, the bipartisan Promoting Women in Trucking Workforce Act (S. 469) seeks to create the Women of Trucking Advisory Board under the leadership of the Federal Motor Carrier Safety Administration to identify the elements that discourage women from entering the trucking industry and promote recruiting, training and mentorship programs. “Removing the barriers that get in the way of women pursuing and retaining careers in trucking is key,” said one of the bill’s co-sponsors, Senator Tammy Baldwin (D-Wis.). Truck driving is more approachable for women today, but there are still roadblocks for entering the profession. Ellen Voie, president of Women In Trucking Association, based in Plover, Wisconsin, discussed how she rates the industry’s recruitment of women: “The industry is doing a better job, but when I started Women In Trucking in 2007, people didn’t even track what percentage of their driving fleet was female. And the carriers would just say to me, ‘Oh, we just hire the best person.’ And my response to them was, ‘Oh really? Well, how come your uniforms are all made for men? How come the trucks are designed for men? How come you don’t even have restrooms for women in your terminals?’” Data compiled by the American Transportation Research Institute show that women as a group excel as truck drivers, Voie said. “Women are safer drivers, women stay with their carriers longer, there’s less turnover, they’re happier with their income, and so now the industry’s like, ‘Oh wow, CONVENIENCE.ORG

47%

The amount of women who make up the U.S. workforce

10%

The percentage of women who are truck drivers

Source: Women In Trucking Association

this is great—bring us more women!’” Voie said. Still, she added, “It’s a double-edged sword. We want to bring more women in, but we have to make sure the industry is accommodating and values women. One of the issues that we are really focusing on now is the safety of female drivers. It’s a higher priority for women.” Carriers can improve safety on the job through excellent equipment maintenance that reduces the chance of breakdowns. “Nobody wants to be broken down on the side of the road. And that’s [true] for women and men,” Voie said. The overall safety culture of a company is another critical consideration. “Where are you sending your drivers?” Voie asked. “Are you sending them to a bad part of town that’s dimly lit? To a crime-ridden area?” “If the driver says, ‘There’s a snowstorm coming, I want to pull over’—what’s the company’s reaction?” Voie asked. “If they say, ‘Absolutely. It’s up to you to make those decisions’—that’s the kind of company you want.” Women In Trucking works with truck stop operators on safety and security, lighting and fencing—making sure that all drivers are safe, not just females, Voie said. “We also have self-defense, self-esteem experts talk at our events about how to carry yourself and improve situational awareness,” Voie said. SEXUAL HARASSMENT AWARENESS The Women In Trucking Association publishes an anti-harassment employment guide, available

OCTOBER 2021 |

123

The American Transportation Research Institute found that women are not only adequate drivers but also safer drivers in most cases. Compared With Women, Men Are:

88%

as likely to have a reckless or negligent driving conviction

78%

as likely to have a safety belt violation

73%

as likely to be convicted of running a stoplight

70%

as likely to be convicted of speeding 1 to 15 miles over the posted limit

124

| OCTOBER 2021

to members upon request. It addresses everyday situations in trucking and what to do in cases of inappropriate—or worse—behavior. The Federal Motor Carrier Safety Administration is studying crimes against female and minority drivers, Voie said. “In anticipation of that study, we’re doing our own survey with members—asking female drivers where they feel least safe. Is it at a loading dock, is it at a customer’s, is it in a training situation?” Dr. Kim Riddle, assistant professor in the School of Nursing and Allied Health at Western Kentucky University, who researches sexual harassment, said, “Women don’t want to go to work and feel like it’s a burden to be there, or that it’s a bad thing to be there.” To decrease the odds of that, Riddle suggested companies ramp up their training in sexual harassment awareness, especially during orientation. “And then once a year, companies need to reiterate that training.” A zero-tolerance policy is “a wonderful idea,” Riddle said. “I know in the trucking industry it’s a little bit harder [to implement] because people deal with so many other people during the course of their day.” She emphasized that such a policy “really needs to be industry wide as opposed to [being established by] individual companies.” DIVERSITY EFFORTS CarriersEdge, a company in Newmarket, Ontario, is working with Women In Trucking on a diversity inclusion index. The company operates a program called Best Fleets which includes a survey, evaluation and recognition of carriers across North America. Carriers must be nominated by one of their drivers, who complete a detailed form of more than a hundred questions. CarriersEdge works with more than 4,000 carriers, and the Best Fleets program was launched in 2009, “so we have a lot of data and insight into what the leading companies are doing to not only get, which is secondary, but more appropriately, keep their drivers,” said Chris Henry, vice president of customer experience and recognition programs, CarriersEdge. Some carriers are working to connect with a broader range of ethnic and other communities to increase driver diversity. “In some of our carriers there’s a very high percentage of transgender individuals operating as drivers. It has definitely grown,” Henry said. CONVENIENCE.ORG

iStock.com/DuxX; vitpho

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“I know that we have quite a few drivers who identify all along the LGBTQ+ spectrum who have been with us for many years, but we did not target them directly or use any unique messaging,” Vadim Komarov, director of marketing for ShipEX, said. “We also have a lot of female drivers and drivers of all different races and religious backgrounds. Our focus is on attracting experienced, safe and reliable drivers, and creating an open and inclusive environment where everyone will feel comfortable and welcome. Unlike many other large trucking companies, we do not have a training program or help drivers get their CDL— we only hire drivers who already have a certain level of experience and a clean record. For this reason, the primary focus of our marketing efforts is reaching experienced drivers.” WORK-LIFE BALANCE Competition for drivers is intense, and continued tightness in the driver market remains an operational challenge for many. “Generally speaking, drivers have more

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| OCTOBER 2021

Stephen Bennett is an editor and reporter specializing in the fuel and transportation industries.

CONVENIENCE.ORG

iStock.com/Alex Potemkin; kali9; RCarner

We want to bring more women in, but we have to make sure the industry is accommodating and values women.

opportunities than they’ve ever had,” said Jamal T. Kheiry, communications manager for Marathon Petroleum. “Our industry specifically has additional regulations,” he said, noting that drivers must have hazmat or tanker endorsements. “Given the scale of our fleet, we have had, and continue to have, a wide range of efforts underway to recruit experienced drivers,” Kheiry said. “We offer very attractive benefits and wages, an employee referral bonus, sign-on bonus and other pay incentives.” Keeping in mind that word of mouth can be as potent a recruiting tool as any, some employers and trade associations are focusing on making drivers’ working environments, company-wide culture and work-life balance as appealing as they can. “Without question, our best recruiters are our drivers,” said Steve Rush, founder and CEO of Carbon Express. “They want the same thing now that they wanted in 1965 when I first began. They want to get paid. They want to be respected. And they want to go home.” Carbon Express, which hauls motor oil among other products and is based in Wharton, New Jersey, has a dedicated run from Louisville to Kitchener, Ontario, five times weekly. One way, the trip is about 540 miles and can take close to nine hours. Rush wanted the two drivers on the run to be able to go home each night. “So instead of hiring at the ends, I hired in the middle,” he said. “One guy goes and gets it. The other guy takes it to where it’s going.” Pilot Co.—seeking at one point to fill more than 300 positions in fuel, DEF and crude oil transport— highlighted quality of work life to potential applicants, pointing out that its drivers “are home more often and proud of the work they do.” Jordan Spradling, vice president of transportation for Pilot, said, “We prioritize taking care of our team members with competitive pay and excellent benefits.”

OPERATIONS How to make strategic decisions about investing in public EV charging.

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| OCTOBER 2021

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s more electric vehicles (EV) make their way into the U.S. transportation fleet, building an expansive network of publicly accessible charging locations is necessary. The movement also begs an important question: How can retailers enter this emerging business sector? A new report from the Fuels Institute Electric Vehicle Council, “Best Practice Guide for Installing and Operating Public Electric Vehicle Charging Infrastructure,” shares insights on how business owners can make strategic decisions about investing in charging infrastructure, from the initial conversations to ultimately serving customers. Few EV infrastructure best practice guides address the questions and issues that site hosts like gas stations may encounter as they weigh adding EV charging. The comprehensive new report helps to bridge that gap by addressing a range of important considerations—from equipment costs to utility demand charges to common issues in the permitting and site planning processes. Plus, it shares case studies from retailers like Sheetz and Kum & Go that count among the early adopters in the EV charging game. “The EV landscape continues to change at a rapid pace,” said John Eichberger, executive director of the Fuels Institute, adding that the Electric Vehicle Council recognized a significant need to grow and develop a public charging network. However, too many questions about what it takes to develop a successful project can lead to uncertainty and inaction. “This report takes a holistic approach to answering these questions to increase confidence and allow business owners to engage with utilities, equipment manufacturers and local permitting authorities more comfortably and effectively,” he said. The report analyzes considerations in three key areas: 1. D eveloping the business case—This section covers questions and issues related to assessing CONVENIENCE.ORG

the public policy environment in various jurisdictions, the type of ownership model a site host may want to pursue, estimated costs (including planning for soft costs) and site selection, among other things. 2. U tility engagement—This section covers issues and questions related to working with utilities to develop EV charging station projects, including assessing interconnection issues, understanding the utility’s interconnection requirements and fee structure and proactively engaging with utilities to successfully shepherd projects through the installation and commencement process. 3. W orking with local authorities that have jurisdiction over site locations—This section largely concerns the permitting process and working with the related governing bodies to successfully install and begin operating the charging station project. “Understanding the various issues involved in evaluating the business decision to invest in public charging is important,” said Eichberger, adding that the report dives deep into the factors involved with installing a successful EV charging station and covers questions related to assessing the public policy environment. There were an estimated 43,225 Level 2 EV charging stations and 6,049 direct current fast charging stations in the United States as of May 2021, according to the U.S. Department of Energy. While studies show most EV owners (80%) charge at home, this behavior is poised to change as the market grows. One 2019 analysis by the International Council on Clean Transportation found that at least 100,000 public and workplace chargers will be needed across the 100 most populous U.S. metro areas by 2025 to serve the more than 2.6 million new EVs expected in those areas. The mix will include both battery-electric and plug-in hybrid vehicles.

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The Biden Administration aims to deploy 500,000 EV chargers by 2030, achieve a 50% market share for EVs by 2030 and increase fuel efficiency requirements for all light duty vehicles. At press time, the House had proposed a $12,500 tax credit toward the purchase of EVs made by U.S. unionized automakers. The bill also includes resources for EV charging infrastructure and hydrogen fueling. OPERATIONAL MODELS There are generally two site host business models for EV charging: owner-operator and third-party owner-operators, and there are advantages and disadvantages to both. In the owner-operator model, the site host purchases the needed equipment from a charging service provider and then works with a separate contractor to install the equipment. The owneroperator has the sole responsibility for the charging station’s operation, maintenance and utility interconnection. In the third-party model, a vendor installs, operates and maintains the charging station and collects revenue directly from the use of the station and may charge membership fees for access to the network of charging stations. Thirdparty owner-operators generally lease space in a host’s parking lot and remit a fee or revenue share from the charging station to the site host. Under this scenario, the third-party operator will likely own any and all environmental attributes that are used to gain state or federal credits and/ or incentives. Companies involved in third-party owner-operator charging include Tesla, EVgo, Electrify America, ChargePoint, EV Connect, Blink Charging and Greenlots. CONVENIENCE RETAILER CASE STUDIES Altoona, Pennsylvania-based Sheetz operates over 580 store locations throughout Pennsylvania, West Virginia, Virginia, Maryland, Ohio and North Carolina. Sheetz initially developed its first sites on its own in 2013 but in 2017 partnered with Tesla to install, operate and maintain supercharging stations as amenities for customers. Tesla’s proprietary global Supercharger network includes more than 24,000 DC fast chargers, and its partnerships include convenience stores and fuel retailers.

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iStock.com/welcomia; phatthanit_r; PhonlamaiPhoto

The Electric Vehicle Council is a nonadvocacy organization with the mission to coordinate the efforts of organizations actively engaged in supporting the deployment of EV charging infrastructure. The EV Council works to distribute existing research and education materials, as well as conducts original research to fill gaps in knowledge and further educate interested stakeholders about the opportunities, challenges and successful strategies associated with the installation and operation of EV charging stations. For more information on the Electric Vehicle Council, visit fuelsinstitute.org/ Councils/Electric-Vehicle-Council.

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egative bout hicles

Electricity

Taxes and business licenses

Warranties

Insurance

Maintenance

Charger communications

Customer support

Rent

Network operations/billing

8% 4% 50% 11%

10% 8%

Source: EVgo, May 2020

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| OCTOBER 2021

Wi-Fi. “Tesla is a first-class operation to deal with, very professional and thorough,” Lorenz told the Fuels Institute. Sheetz gains customers for its stores and has been able to build relationships with them. “Our top locations are doing over 60 charges per day with dwell times of around 20 minutes on average. Having Superchargers makes your facility a destination for Tesla drivers to seek out and plan a trip around,” Lorenz said. Kum & Go, based in Des Moines, Iowa, operates 400 stores in 11 states and offers EV charging as an amenity at a number of its sites. The convenience retailer has experience with both the owneroperator model and the third-party model, partnering with Tesla and ChargePoint. When determining whether to offer charging space, Kum & Go first outlined the company’s future and if EV charging fit into that vision. The retailer also looked at overall market trends. “We took a deep dive and learned all that we could about EVs and EV charging,” Brad Petersen, director of retail fuels at Kum & Go, told the Fuels Institute. “That’s when we decided as an organization that we would begin offering EV charging at our sites. We created a plan. That’s important—you have to have a plan.” Kum & Go leaned on experts already in-house, such as its energy manager whose existing relationships with utilities resulted in a grant from a local provider to develop EV charging sites 100% funded by the utility. The company also has a sustainability manager and a dedicated point person who works on EV charging, and it meets regularly with its third-party charging partners. “We learn so much from them. Developing those relationships is critical,” Petersen said.

iStock.com/zenstock

As of April 2021, Tesla and Sheetz have deployed Tesla Superchargers at 44 Sheetz locations. Mike Lorenz, former executive vice president of petroleum supply at Sheetz, noted the collaboration has worked well for both companies. Tesla can serve its driver population by locating Tesla Superchargers where drivers need them and in places with key amenities that Tesla drivers need, such as food, beverages, ATMs, restrooms and

“Best Practice Guide for Installing and Operating Public Electric Vehicle Charging Infrastructure” can be downloaded for free at www.fuelsinstitute.org/Research. CONVENIENCE.ORG

COOL NEW PRODUCTS 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 2020. The products featured here also can be seen at www.convenience.org/coolnewproducts.

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The BIDI®

The BIDI® Stick has a unique system that delivers a consistent experience in every draw. Embedded in the device is technology that ensures that each drag consistently provides an experience focused on the needs of adult consumers. The BIDI® Stick has also been awarded a UL 8139 certification for its battery and electrical systems’ durability, demonstrating Bidi Vapor’s commitment to providing a quality vape device. Contact us at support@bidivapor.com or (833) 367-2434; (833) FOR-BIDI.

Pouch comes from USA-made, high-quality, non-tobacco derived nicotine. It is a smokeless and odorless way to consume nicotine. Like any Bidi Vapor product, each pouch has undergone stringent quality control and testing before leaving the manufacturing facility to guarantee premium satisfaction. The BIDI® Pouch is a product for adult smokers looking for an alternative to combustible cigarettes. For more information, visit wholesale.bidivapor.com or email sales@bidivapor.com. Bidi Vapor’s hotline number is (833) 367-2434.

NEW TO THE INDUSTRY

Max Nutrition Products Max Energy Shots

Who Needs a Bottle? - More Healthy and Convenient Energy Shots

Max Energy is a super healthy and convenient alternative to bottled energy shots. Our unique ingredients provide increased energy, stamina, and mental focus. Plus, they’re packed with Immune System and Health Boosters. Available in two great tasting flavors, Citrus and Mocha. Individually packaged in a convenient pouch and less than .5 oz per serving. Display boxes contain 25 Pouches. Some of our Unique Ingredients: Astaxanthin, Cordyceps, Goji Berry, American Ginseng, L-Theanine, Amino Acids, and Natural Caffeine. For more information, email info@maxnps.com or call (385)294-8269 and visit www.maxenergyshots.com/retail. (Password - Show21) Max Energy Shots - Feel the Difference!

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NEW TO THE INDUSTRY

Dynamis Ventures Inc.

NotCo

SILVERBACK Intense Spitless Tobacco

NotMilk

Introducing SILVERBACK Dip

Milk, Meet Your Match

Are you ready to get experienced dippers excited again, and generate incremental category profit in the process? SILVERBACK Intense Spitless Dip blends are crafted to bring a next-level experience to dippers everywhere, at an attractive everyday price INTENSE (naturally stronger tobaccos), SPITLESS (upper lip enjoyment), DISCREET (small can, small pinch and spitless) and LONG-LASTING. Currently offered in 4 SKU variety Green, Classic, Dark and Bold. For more information, visit www.SILVERBACKdip.com, email orders@dynamisventuresinc.com or call us at (866) 969-8585.

NotCo, the #1 Plant-Based company in LATAM, has entered the market with NotMilk, an alternative milk created using AI. Unlike other alternative milks that primarily focus on one ingredient (almond, oat), NotMilk is created using a combination of ingredients to recreate the molecular structure of cow’s milk. The process results in a product that mimics the taste, smell and functionality of milk. NotMilk is available in shelf stable and refrigerated options (8z & 64z). For more information about NotMilk and additional product launches, visit www.notco.com/us or email Megan@notco.com.

NEW TO THE INDUSTRY

Naturipe Farms Naturipe Snacks™ Berry Parfait

A Berry in Every Bite

The NEW Berry Parfait is the perfect fresh parfait solution for C-store operators and their customers. Our ready-made parfait combines thoroughly washed fresh blueberries, Chobani Greek yogurt, crunchy granola and a wooden spoon, all assembled in innovative 6 oz packaging to offer 21 days shelf-life from date of production. Come see our full line-up of Naturipe Snacks™ products at NACS Show booth #6677.

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NEW TO THE INDUSTRY

Stewarts Enterprises, Inc

Hard Rock Hard Seltzer

Stewart’s Spiked Seltzer

We’ve Got Your Taste

Iconic Just Got Spiked

From resorts to casinos, and cafes to concert venues, Hard Rock is a legendary name. SEI has acquired the rights to bring this powerhouse to the hard seltzer market. Inspired by Hard Rock’s signature cocktails, Hard Rock Hard Seltzers are packed with flavor, and contain 6% ABV. Each 12 fl oz slim can is just 120/ 130 calories, 1g carb, and 0g sugar. Hurricane, Blackberry Sangria, Mojito, and Strawberry Lime flavors are just the beginning! No matter who you are, We’ve Got Your Taste. For more information email info@stewartspiked.com.

Nearly 100 years after the birth of Stewart’s, meet Stewart’s Spiked: sparkling and crisp hard seltzers spiked with Stewart’s classic flavors! At 5% ABV, each 12 fl oz slim can contains just 100 calories, 0/1g sugar and 1g of carbs. They are gluten free, vegan and made with natural flavors. Nostalgia never tasted so good. Introductory flavors are the iconic Root Beer, Orange Cream, Black Cherry and the all new Raspberry Lime. For more information visit www.stewartspiked.com or email info@stewartspiked.com.

NEW TO THE INDUSTRY

Rich Products Fully Finished Glazed Donuts - Extended Shelf Life

BAKERY FRESH. ALL DAY.

There’s nothing more eye-catching than a fresh display of donuts. Keep your display full and looking picture-perfect all day long with Rich’s Fully Finished Glazed Donuts – the superior stability option that stays fresher, longer — at least 2X longer than other bakery options. With a delightfully soft texture and stable glaze that lasts for days, you’ll deliver on the quality, taste and visual appeal that make donuts irresistible – all while reducing waste and saving on time and labor. Because freshness matters, any time of day. Ring in the freshness at: richsusa.com/fully-finished-donuts.

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NEW TO THE INDUSTRY

TAAT Global Alternatives TAAT™ Beyond Nicotine Cigarettes

Find out why everyone’s talking about TAAT Beyond Nicotine Cigarettes!

Finally, an innovative yet straight-forward solution for adult smokers 21+ looking for a credible tobacco cigarette alternative. TAAT Beyond Nicotine cigarettes give smokers the sensory and smoking experience they prefer with their smoking ritual without the burden of tobacco or nicotine. Engineered to taste like today’s most popular cigarette brands but sold at a fraction of the price, TAAT Beyond Nicotine cigarettes make it easy for adult smokers to switch to something new and non-addictive. TAAT is committed to supporting our retail partners with significant sell through support including digital advertising, in-store point of sale materials, an online store locator and margins 2-3x higher than those found on traditional tobacco cigarettes. Visit the TAAT team at booth #1659 at NACS to find out why TAATs are what “freedom tastes like!” For further information, contact sales@taatglobal.com and visit trytaat.com for more product information.

NEW TO THE INDUSTRY

Ocean Spray Cranberries, Inc. Fruit Medley

Blends with Benefits!

Introducing Fruit Medley - unique combinations of Craisins® Dried Cranberries and other expertly paired dried fruits that deliver key benefits and are full of flavor. Fruit Medley is available in three blends. Immunity Blend combines Craisin® Dried Cranberries, dried mangos, dried pineapples & banana chips. Probiotic Blend combines Craisins® Dried Cranberries, dried blueberries, dried cherries & raisins. Fiber Blend combines Craisins® Dried Cranberries, dried apples & dried nectarines. All are free of artificial colors, flavors and preservatives. Available in 5oz resealable bags. For more information about Ocean Spray products, please call Tami Jermyn at (267) 258-1724.

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NEW TO THE INDUSTRY NEW TO THE INDUSTRY

DEFY Bitstop

DEFY Boost | Water | Recover CBD

Bitcoin ATMs

The DEFY Performance System

Earn Money Selling Bitcoin

DEFY is a Black owned, Woman owned, Veteran owned performance wellness company, focused on helping athletes and active consumers reach their full potential with its DEFY Performance System: BOOST, HYDRATE, and RECOVER. From an early morning energy boost, to the hydration you need to get through your afternoon, to the rapid recover tools with CBD that can help you prepare for tomorrow, DEFY offers products designed to support your whole day. NACS Booth #8478 - Contact: Sales@DrinkDEFY.com - See more at DrinkDEFY.com The FDA maintains that the sale of these products is illegal under the Federal Food, Drug & Cosmetic Act.

Want to easily earn income by hosting a Bitcoin ATM? Need another source of income? You can easily attract new customers by offering services that are in high demand. There is no cost to you and our kiosk does not compete with your traditional ATM. You provide 2’x2’ of floor space and an AC outlet. We do the rest. Multiple compensation plans available. Visit bitstop.co, email support@bitstop.co or call (305) 771-2487. Visit us in Booth #3574 to learn more!

NEW TO THE INDUSTRY

NEW FLAVORS

Energizer Holdings, Inc.

Albanese Confectionery

Axe Auto Air Fresheners

Albanese® World’s Best Gummies

NEW! Axe Auto Air Fresheners

Ultimate™ 8 Flavor Gummi Bears™

Available in 3 formats: Mini Vent Clip, Hanging Gel, and Gel Can. These items come in 5 proven Axe scents: Apollo, Phoenix, Dark Temptation, Essence, and Black. ( 1 packs pictured, 2 packs available in all formats except Gel Cans) Bobby Elkes Energizer Holdings, Inc. Cell (630) 803-8358 Robert.Elkes@energizer.com

The Ultimate™ 8 Flavor Gummi Bears™ have elevated the tasting experience by using our signature texture & innovative flavor explosion. We’re also proud to say these gummies have all the trending attributes of natural flavors, colors from real fruits and vegetables, gluten free, fat free, low in sodium, and made in the USA! The variety of unique true-to-fruit flavors give your palate the experience of biting into the actual fruit, that your taste buds will be begging for the next flavor. Visit www. albaneseconfectionery.com and call 1 (800) 736-0581.

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NEW FLAVORS

Baker Boy The Donut Hole® Individually Wrapped Donuts

Fully Finished, Retail-Ready Individually Wrapped Donuts

The COVID-19 pandemic has shined a light on the importance of food safety. More than ever, operators are under scrutiny to provide fresh products in safe, user-friendly packaging. Baker Boy’s The Donut Hole-branded Individually Wrapped Donuts are ideally suited for multiple foodservice segments — especially convenience stores. These donuts arrive frozen, and ready to thaw and serve in convenient retail-ready packaging. There’s something for everyone with 8 unique flavors, including Baker Boy’s signature Magic Ring® Filled Donuts — ring donuts featuring delicious filling in every bite — and popular classics like the Glazed Donut and Maple Long John. The Donut Hole donuts are the same high-quality foodservice donuts customers have come to expect from Baker Boy. These donuts have a wonderful fresh taste, are sealed for safety, require minimal labor, and lead to little product waste. Visit bakerboy.com to learn more, or see and taste the donuts for yourself at our kiosk inside the Advantage Solutions booth at the NACS Show (Booth #6431).

NEW FLAVORS

Benestar Brands

Cookies United

Turkey Creek Cheese Snacks

The Chocolate Tuxedo, Frosted Coffee Cake, Iced Blueberry

An Explosion of Cheesy Flavor

Indulgent New Cakebite Flavors

Turkey Creek Snacks introduces Cheddar Bomb and Blazin Hot crunchy cheese snacks. Made with real cheddar our insanely crunchy cheese snacks keep you satisfied and deliver on the intense flavors you crave. To start the conversation please reach us at sales@benestarbrands.com.

Cakebites continue to excite and elevate the snack cake category. Cakebites are excited to introduce the newest flavors to the already amazing line up… The Chocolate Tuxedo, Frosted Coffee Cake, Iced Blueberry Cobbler. Cakebites are available in 12ct displays, 4ct family packs, as well as our 126ct gravity feed displays, perfect for C-Stores. All three flavors are available TODAY! For more information please visit cakebites.com or call 631-581-4000.

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NEW FLAVORS

Diageo Beer Company

Krispy Krunchy Chicken®

Smirnoff Seltzer Poco Pico Pack

Sunrise Breakfast Sandwiches

A little sweet. A little heat.

Because Your Coffee Is Lonely

Introducing the all-new Smirnoff Seltzer(R) Poco Pico Pack. In Spanish, “Poco Pico” means a little bit of spice. In your business it means more profits and traffic. Smirnoff knows flavors -- makers of the world’s #1 vodka and a leader in vodka flavors as well as flavored malt beverages. And when it comes to hard seltzer, we bring it! With 2/3rds of Americans interested in spicy and sweet combinations, this new pack is packed with flavors like Mango Chili, Pineapple Jalapeno, Spicy Tamarind and Spicy Margarita. All that spicy sweetness. For more info, call your Smirnoff Ice and Seltzer distributor.

Krispy Krunchy® now has all dayparts covered! Our NEW Sunrise Breakfast menu allows operators to build a professional turnkey program with the support of our Krispy Krunchy® field team members. Our aim is to help reach additional consumers with easy-to-serve products that can be oven-baked or merchandised in retail cold space. Breakfast items include breakfast sandwiches with egg, cheese, and your choice of sausage, bacon, or Canadian-style bacon, breakfast Crispitos®, empanadas, blueberryflavored biscuits, & honey butter biscuits.

NEW FLAVORS

The Hershey Company

REESE’S Snack Bar

REESE’S Crunchy Snack Cake

Introducing REESE’S Snack Bar

Introducing Crunchy Snack Cakes

The Reese’s brand is rolling out a snack bar for fans to enjoy…Reese’s Snack Bar. Reese’s Snack Bar is the perfect mixture of crispy, crunchy, salty and sweet. It starts with a layer of crisped whole grain rice mixed with bits of crunchy roasted peanuts, then topped with Reese’s peanut butter creme and bottomed in milk chocolate. Reese’s Snack Bars are available in convenience stores nationwide. (SRP: $1.59)

In 2020, Reese’s launched a new addition to the morning lineup with Reese’s Snack Cakes. This year the Reese’s brand is introducing a strong sequel…Reese’s Crunchy Snack Cakes. Reese’s Crunchy Snack Cakes are baked snacks that bring a delicious, easy-to-eat, and filling snack. It consists of a soft baked chocolate cake layer topped with salty Reese’s Peanut Butter Creme and crunchy peanuts covered in smooth, real milk chocolate. Reese’s Crunchy Snack Cakes are available at convenience stores nationwide. (SRP: $1.99)

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NEW FLAVORS

Monster Energy Company Monster Reserve

Monster Reserve Watermelon and White Pineapple

Introducing the NEW MONSTER ENERGY RESERVE line! Bringing popular fruit forward flavors to extend our core family. MONSTER RESERVE WATERMELON is the perfect nostalgic summer flavor that can now be enjoyed all year long. MONSTER RESERVE WHITE PINEAPPLE is our take on the classic, tropical fruit flavor with different notes blended to give you a truly unique and delicious experience. These flavors are consistently ranked in the top 5 flavors that shoppers of all ages prefer. Plus, full sugar, full flavor energy drinks are still the fastest growing segment within the category. It’s the same beast with new flavors. Available nationwide on October 11, 2021. For information, call 951.739.5522 www.monsterenergy.com

NEW FLAVORS

Patties Foods

StarKist Co.

Four ‘N Twenty Aussie Meat Pies

StarKist® NEW Premium White Chicken Pouch

Aussie Beef. Pastry. Yum.

Chicken Pouch - Tear. Add. Go!

Looking for something new and exciting to satisfy your on the go customer? Stop by our NACS Booth# 7558 to sample and discuss this innovative new item. Great for hot hold and grab n go cases! contact: jonthan.harnish@patties.com.au or dennis.cirucci@ patties.com.au for more information.

StarKist® premium, tender white chicken in a convenient Flavor Fresh Pouch® – fully cooked chicken in a single serve pouch that truly does not require draining! Our chicken is sourced and packaged in the United States, raised cage-free (chickens were allowed to roam freely). Each pouch features 15g of protein and 80 calories – enjoy straight out of the pouch or in your favorite chicken recipes to save time. Just tear, add and go! BOOTH 7538 | Jim.Rodgers@StarKist.com or Don.Allen@StarKist.com | StarKist.com

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NEW FLAVORS

Wenzel’s Farm

Lindt

Sweet & Spicy Jerky, Smoked BBQ Jerky, Mango Habanero Sticks

Classic Recipe Whole Hazelnut Bar

Real NEW Flavors—For Real Life

Classic Recipe Whole Hazelnut

It’s been busy on the farm this year… Joining the Wenzel’s Farm Beef Jerky lineup are 2 new flavors—Sweet & Spicy and Smoked BBQ. These two fantastic flavors offer great taste with the same healthy, naturally smoked beef that customers expect from Wenzel’s Farm. But it doesn’t end there... Cool, sweet mango meets hot, spicy habanero to tango on your taste buds for a unique and perfectly balanced taste in the new Mango Habanero snack stick. Try all 3 new unbelievable flavor combinations today! For more information, visit wenzelsfarm.com or call (800) 336-6328.

CLASSIC RECIPE IS the finest milk chocolate experience – with a melt so smooth and creamy, it’s Beyond Words. CLASSIC RECIPE WHOLE HAZELNUT Bar 1.2oz has whole hazelnuts covered in delicious hazelnut creme and enrobed with creamy milk chocolate. For more information, please contact your Lindt sales representative.

HEALTH WELLNESS

MYND DRINKS 100% Plant Based Wellness & Recovery Drinks That Taste Great!

WELCOME TO THE FUTURE!

Wellness and Recovery Drink sales are forecast to surge by more than 25% per year globally. MYND DRINKS lead the market in every category: the best taste, the purest ingredients, and the highest quality formulation. MYND DRINKS combine the best of science and nature. These all-natural 100% plant based wellness and recovery drinks taste great. MYND DRINKS unique Plant Based Elixir is the new frontier in the breakout category of enhanced, functional beverages. A booming segment of consumers use wellness and recovery drinks to help them relax, refresh and recover - repeat customers will seek out MYND DRINKS after workouts or ahead of crucial meetings. Will consumers be buying MYND DRINKS from you, or your competitor? For more information, contact David Sheehan at MYND DRINKS USA, dave@mynddrinks.com or call or text (773) 698-3723

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HEALTH WELLNESS

ZOA ENERGY ZOA ENERGY ZERO SUGAR AND 100 CALORIE

THE FASTEST GROWING BRAND IN ENERGY

Founded by Dwayne “The Rock” Johnson, ZOA is re-defining the energy category by offer a healthier option, reaching a much broader audience. ZOA offers a balanced profile of 160mg of natural caffeine from green tea and green coffee (a typical coffee in this size has 240 mg of caffeine), along with B vitamins. ZOA also features 100% daily value of Vitamin C, as well as branched-chain amino acids, choline, and turmeric. Available in 5 amazing flavors in both Zero Sugar and 100 calorie versions, with 2 new flavors launching in January 2022. Visit zoaenergy.com or follow us at @zoaenergy.

HEALTH WELLNESS

NEW TECHNOLOGY

Stewarts Enterprises, Inc

Bitcoin Depot

Bounce Back

Bitcoin Depot’s Cryptocurrency ATM

Take Back Tomorrow

Bringing Crypto to the Masses!

Bounce Back is a carbonated supplement that replenishes the body after a night out. Consumed before bed, it features 19 active ingredients which work together while you sleep. Its optimal mix of amino acids, essential vitamins, minerals and prebiotics supports liver function, targets tiredness, boosts the immune system, supports sleep and enhances recovery. Naturally flavored with pineapple and grapefruit, Bounce Back is light and refreshing. Each 250ml can is just 40 calories, gluten free and vegan. For more information visit www.bouncebackdrinks.com or email info@stewartspiked.com.

Bitcoin Depot is the largest cryptocurrency ATM Network and an INC 5000 company. We offer users the ability to buy and sell Bitcoin and over 30 other cryptocurrencies at thousands of locations across the United States. Our mission is to provide the most secure, convenient, and fastest cryptocurrency transaction. Our vision is to bring cryptocurrency to the masses. To partner with us or to learn more, visit our website at https://bitcoindepot.com/. You can also call us at 678-435-9604 or send us an email to sales@bitcoindepot.com.

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CONVENIENCE.ORG

NEW TECHNOLOGY

APG Cash Drawer Introducing The Architect™ by APG

An All-In-One POS Cable Management Solution

This NEW, patent-pending all-in-one POS cable management solution is perfect for specialty and hospitality retail environments. The system helps boost business efficiency with its extensive cable management routes, hiding a variety of interface cables and peripheral power supplies. The cash drawer is constructed with a clean, stylish molded plastic and steel construction that is secure and lightweight. It supports a modern tablet-based or touch screen POS environment while maintaining a 16” x 16” footprint. A quick snap fits APG’s Minota® Cash Drawer and features an optional pole display, plexiglass sneeze guard, pin-pad, or scanner holder. For more information contact us today! +1 (763) 571-5000 | sales@us.cashdrawer.com | www.cashdrawer.com

NEW TECHNOLOGY

Energizer Holdings, Inc.

London Storm LLC

STP Tire Fix Sealant and Inflator - 16 FL OZ

MyAirShield™

NEW! STP Tire Fix

Invisible Defense Against Viruses

STP Tire Fix Tire Sealant and Tire Inflator gets you back on the road quickly and easily without a jack or tools. Formulated as a temporary solution, this stop leak product instantly seals and inflates your tire. Bobby Elkes Energizer Holdings, Inc. Cell (630) 803-8358 Robert.Elkes@energizer.com

It’s been a long time since COVID became a household name. We are all ready to return to life without restrictions, but how do we keep children safe in schools? Employees safe at work? What about our parents, grandparents, first responders’ health? The new MyAirShield™ technology is quickly emerging as a solution to this global problem. This personal portable disinfectant badge sanitizes your breathing space. It’s highly effective against airborne pathogens, including viruses, bacteria, fungus, mold, allergens, and spores. 888-927-9208. info@MyAirShieldWorldWide.com. Booth 7587

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NEW TECHNOLOGY

Revolution Retail Systems Quantum Series - Cash and Coin Recycler

Optimizing Cash Handling within Convenience Store Operations

The Quantum Series was designed to support any size convenience store, automating Cash Handling, and delivering a robust ROI. Revolution is the Market Leader and a Best-In-Class innovator in the design of cash recycling solutions for businesses of all sizes. This unique focus has led to the deployment of technology into some of the World’s Largest, Big-Box Retail, C-Store, Grocery, and Small format Retail in North America. Join the Revolution! For more information please email or call: info@rrs360.com, 1-855-616-3827 www.revolutionretailsystems.com

NEW TECHNOLOGY

RockItCoin Bitcoin ATM

Get Paid to Host a RockItCoin Bitcoin ATM

RockItCoin Bitcoin ATMs are the fastest and most convenient way to buy and sell cryptocurrencies for cash. Requiring just a 2 x 2 square foot space in your location, you’ll be able to effortlessly drive new customers to your business, earn extra income, and set yourself apart from the competition. The team at RockItCoin will work with you to promote your new investment with free Google Ads campaigns and additional marketing while also giving you access to our industry-leading customer service, all with zero-risk and zero-cost to your store location. For more information, visit www.rockitcoin.com/host or call (877) 428-2286.

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NEW TECHNOLOGY

CoinMover Bitcoin ATM Kiosk

Currency Redefined

A leading Bitcoin & cryptocurrency ATM operator, CoinMover provides its retail partners with superior benefits to their business. Retailers receive monthly passive income, leverage free location advertisings, and benefit from optimized search listings. Additionally, our strict regulatory and compliance processes enable us to offer one of the highest tier maximums — allowing increased purchasing limits — thus driving higher-spend foot traffic and incidental sales. Our best-in-class personable customer service — unique in the industry — ensures zero burden on your business operations while encouraging repeat visits. Contact jim.murray@coinmover.com or call (617) 917-7102 to find out more about how a partnership can benefit you! CoinMover is a U.S. Department of Treasury Registered FinCEN MSB #31000188780478.

NEW DESIGN

NEWNEW DESIGN DESIGN

PearsonIndustries Ranch Elk & Bison Jerky Federal

Pearson Ranch Elk & Bison Jerky

162 Count POP Starter Kit Vision Series

162 Count POP Starter Kit

Pearson Ranch Starter Kit Engineered to Impress

Pearson Ranch Starter Kit

This kitQuality is a great way to introduce our exciting lineup of products. Featuring our exotic When Engineering meets Modern Design the result is a sleek & contemporary line with jerky and snack sticksaninelegant, Elk, Buffalo, Venison and Wild Boar varieties! Our merchandiser. By combining Europeaninspired aesthetic, with American exotic products are Natural, Gluten Freenew andprecedent contain noinMSG Nitrites. The clipthat strips ingenuity, the Vision Series sets a bold foodormerchandising feature our traditional muscle beefprofits. jerky inWith HotHeated, & SweetDry and&Cowboy Original elevates product appealwhole and maximizes Refrigerated flavors. Theyou’ll caddies Green Blend Beefedge. & PorkVisit snack offerings, findinclude everything youChile needandto Autumn gain a competitive us sticks at made with authentic New chiles. Contact us: www.PearsonRanchJerky.com, https://federalind.com or Mexico call at 800-356-4206 sales@pearsonranchjerky.com or call 505-366-7774. NACS booth #2837.

This kit is a great way to introduce our exciting lineup of products. Featuring our exotic line with jerky and snack sticks in Elk, Buffalo, Venison and Wild Boar varieties! Our exotic products are Natural, Gluten Free and contain no MSG or Nitrites. The clip strips feature our traditional whole muscle beef jerky in Hot & Sweet and Cowboy Original flavors. The caddies include Green Chile and Autumn Blend Beef & Pork snack sticks made with authentic New Mexico chiles. Contact us: www.PearsonRanchJerky.com, sales@pearsonranchjerky.com or call 505-366-7774. NACS booth #2837.

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NEW DESIGN

NEW SERVICE

Zippo Lighters

Information On Demand, Inc.

NEW Black Light Designs

Pre-employment Background Screening

NEW product at booth 2856!

Game Changing HR Solutions

Introducing a new way for your Zippo lighter to illuminate the dark - black light designs! One of the decoration methods most frequently requested by consumers is now available, debuting with these three psychedelic designs. Need more information? Please contact Alicia Mikowicz at amikowicz@zippo.com.

IOD provides comprehensive background screening options for all industries. Our program is integrated with the who’s who of applicant tracking & HRIS solutions. We also offer applicant self-entry via our secure web-based platform and tailor packages for any business large or small. Our FCRA certified search team reviews all records before they are returned to the client, typically in six hours or less. A variety of packages and or a la carte services are available to best fulfill your hiring needs, with no contract or sign-up fees. Call us at (855) 914-4636. See us at NACS Show booth #7388.

NEW TO THE INDUSTRY

NACS NACS State of the Industry Report® of 2020 Data

Discover What’s Next—And How To Get There Faster

Today’s dynamic landscape requires agility—a balance of efficiency and effectiveness to free up resources and fuel new growth. You have to know where to invest in technology and how to harness data to deliver targeted, personalized offerings and customer experiences—it’s essential to winning trips and edging out competition. So, what’s next and how can you get there faster? For more than 50 years, our industry has relied on this report to answer this question and more. Understand the ‘big picture’ with data and analysis on economic, market and shopper dynamics; Maximize effectiveness and profitability with insider access to aggregate financial, operational and category data from more than 27,000 convenience stores across the U.S.; and Benchmark against top performers in the industry and determine key drivers to their success. Get your digital copy and reap the future-altering benefits. Convenience.org/SOI

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INDEX HEALTH AND WELLNESS

NEW TECHNOLOGY

MYND Drinks..............................................................................143 Stewarts Enterprises Inc....................................................... 144 ZOA Energy.............................................................................. 144

APG Cash Drawer.....................................................................145 Bitcoin Depot........................................................................... 144 CoinMover..................................................................................147 Energizer Holdings, Inc..........................................................145 Federal Industries, a Standex Co........................................147 London Storm LLC...................................................................145 Revolution Retail Systems................................................... 146 Rock It Coin............................................................................... 146

NEW DESIGN

Pearson Ranch Elk & Bison Jerky........................................147 Zippo Lighters...........................................................................148 NEW FLAVORS

Albanese Confectionery........................................................139 Baker Boy.................................................................................. 140 Benestar..................................................................................... 140 Cookies United......................................................................... 140 Diageo Beer Company............................................................141 Krispy Krunchy Chicken..........................................................141 Lindt & Sprungli USA Inc........................................................143 Monster Energy Company....................................................142 Patties Foods.............................................................................142 StarKist Co.................................................................................142 The Hershey Company............................................................141 Wenzel's Farm..........................................................................143 NEW SERVICE

Information on Demand.........................................................148

CONVENIENCE.ORG

NEW TO THE INDUSTRY

Bidi Vapor...................................................................................135 BitStop........................................................................................139 Defy..............................................................................................139 DSD Express..............................................................................134 Dynamis Ventures Inc.............................................................136 Energizer Holdings, Inc..........................................................139 Max Nutrition Products..........................................................135 Naturipe Farms.........................................................................136 NotCo ..........................................................................................136 Ocean Spray Cranberries, Inc..............................................138 Rich Products ...........................................................................137 Stewarts Enterprises, Inc......................................................137 TAAT Global Alternatives.....................................................138 NACS SOI Report.....................................................................148

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149

GAS STATION GOURMET

Huckleberry Love

St. Regis Travel Center embraces Montana’s wild summer fruit. BY AL HEBERT

Tourists and regulars stop in for the huckleberry shakes at St. Regis Travel Center in Northwestern Montana. The site includes a c-store, Huck’s Grill, Dolly’s Ice Cream and Espresso and fuel pumps.

“I

’m your huckleberry,” is an iconic line from the American film "Tombstone" starring Val Kilmer. In St. Regis, Montana, “your huckleberry” can be found in countless food ideations at St. Regis Travel Center. “Huckleberries only grow in the wild, west of the Mississippi and cannot be cultivated. They have a unique flavor. It’s not like a blueberry,” explained owner Muffy Bullock. Northwestern Montana is a well-known region for picking the tiny purple berries. St. Regis Travel Center has been in Bullock’s family for almost 60 years. The travel center includes fuel, a c-store, Huck’s Grill, Dolly’s Ice Cream and Espresso and Cutthroat Henry’s Casino and packaged liquor. “We’re very much a convenience store with the feel of a country store. We offer everything you’ll find in a traditional store with variety and high-quality small production batch items,” said Colin McKearnan, St. Regis Travel Center general manager. Tourists come to this part of Montana to visit Glacier National Park and Flathead Lake, the country’s largest freshwater lake west of the Mississippi. When they stop in, enjoying a huckleberry milkshake is often on their mind.

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| OCTOBER 2021

“Our shakes are made with real huckleberries. We use a soft-serve shake with our own recipe of huckleberry topping and whole berries in it,” said McKearnan. “We sell 800 on a really busy summer day and 100 a day in the winter” across the travel center, Bullock said. “We average around 260 a day year-round.” At Dolly’s, the best-selling fudge flavors are “huckleberry, huckleberry chocolate, huckleberry cheesecake, huckleberry walnut,” Bullock said. At Huck’s Grill, there’s a turkey wrap with huckleberry vinaigrette. For burger lovers, the hand-patted Huck’s Signature Burger includes cheddar cheese, and what else? Huckleberry barbecue sauce. Huckleberry cream cheese toast and huckleberry pancakes are favorites for breakfast, which is served until noon each day. Of course, there’s freshbaked Montana Wild Huckleberry Pie for dessert. There are plenty of healthier alternatives, too. Most of those are grab and go. “If you’re traveling with dietary restrictions snacks may be hard to find,” said Bullock, but St. Regis Travel Center has options. “We make five different salads, and we do healthier snack packs. We have keto-friendly CONVENIENCE.ORG

We use a softserve shake with our own recipe of huckleberry topping and whole berries in it.

Huckleberry shakes are one of the main draws at the travel center, but there are plenty of other huckleberry-infused items on the menu. Here, Ashlyn Lyons serves up breakfast plates at Huck’s Grill.

items,” said McKearnan. “We have an eight-foot gondola with healthy options that include items like vegetable-based chips, mushroom jerky, fish jerky and tomato jerky.” GETTING THE WORD OUT In the digital age, St. Regis Travel Center does things a little different. “Our strongest campaign is highway advertising. People see that purple milkshake and stop,” Bullock said. Adds McKearnan, “We have generations of families that have visited the travel center each year. We feel if we treat them right they’ll come back and their children will come back.” On Facebook, customers are encouraged to post pictures showing where they shake for a chance to win $20 gift certificates. And don’t forget about restrooms. You hear it all the time—clean restrooms will draw customers to a store. That can’t be stressed often enough. “The ladies’ room is partitioned into two parts. It can be closed off, so one side can be cleaned while the other side can be open to customers,” McKearnan explained. “Cleaning the restrooms is a central focus of what employees do. Every 60 minutes the janitorial team cleans them.” CONVENIENCE.ORG

PANDEMIC Everyone knows that 2020 was a tough year for businesses. While some areas of St. Regis Travel Center were closed, the c-store and fuel pumps remained open. When things reopened it was busy, and “We had the best summer we ever had,” Bullock said. “People came to Montana to retreat from the rest of the world. They could safely hike and camp. We see more campers and more boats than ever.” “During the pandemic we were doing more volume at the window. Now it runs neck and neck,” Bullock said of Huck’s Grill, which has a dining room plus a takeout window. With the resurgence of COVID-19 and differing attitudes about staying safe, caution and respect are important. “We try to balance guidance from the CDC and the governor. We have free masks and hand sanitizer. This recent increase is offering challenges. Everyone in business is trying to balance safety of customers and staff. We try to respect everyone’s views. It’s a tricky place to be standing right now,” explained McKearnan. Montana is Big Sky Country. The tiny huckleberry made St. Regis Travel Center Big Pie Country … and Big Shake Country.

Al Hebert is the Gas Station Gourmet and showcases America’s culinary treasure— gas station cuisine. He shares these stories and on occasion, a recipe or two at www. GasStationGourmet.com. He is a NACS Magazine contributor, bringing foodservice ideas to readers.

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GLOBAL TRENDS

Outstanding Achievement

Congratulations to the 2021 NACS Asian Convenience Retail Award winners.

D BY SORE SPON

PETRONAS is the winner of the 2021 NACS Asian Convenience Retail Technology Award. The Malaysia-based company began its digital transformation in 2018 and continues to enhance its strategy, including updates to its point-of-sale and back-office systems.

he NACS Asian Convenience Retail Awards recognize notable achievements in the Asian retail community. Each year, retailers, industry experts and suppliers gather at NACS Convenience Summit Asia to celebrate industry achievements. This year, due to COVID-19 restrictions, awards were presented during a virtual NACS Convenience Summit Asia, which took place in August. Congratulations to these dynamic winners! NACS ASIAN CONVENIENCE RETAIL TECHNOLOGY AWARD WINNER: PETRONAS Dagangan Berhad Malaysia-based PETRONAS Dagangan Berhad (PDB) is the winner of the 2021 NACS Asian Convenience Retail Technology Award. Gilbarco Veeder-Root, a global leader of integrated technology solutions in the retail petroleum industry, sponsored the award. PDB embarked on its digital transformation in 2018 and continues to enhance its strategy by updating its point-of-sale and back-office systems, as well as implementing open platform with full

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| OCTOBER 2021

interoperability and standard APIs. Cross-functional collaborations, consumer data and technological expertise allow the company to solve customer and stakeholder pain points with digital solutions. For its retail locations, PETRONAS introduced Setel, Malaysia’s first mobile application that integrates fuel payment, retail and loyalty benefits in one platform. It allows customers to seamlessly purchase fuel from their vehicles and pay for items in Kedai Mesra convenience stores with minimal contact. The app also introduced Deliver2Me, a new level of convenience with Malaysia’s first in-car shopping experience, which enables customers to purchase selected items from Kedai Mesra and have them delivered to their vehicles while refuelling. Next, Setel is poised to scale beyond PETRONAS stations and empower retail businesses with its proven solutions. Additionally, PDB is also rolling out new outdoor payment terminals from Invenco at the station forecourt to provide an interactive and enriching experience for customers during re-fuelling. PETRONAS is also known for driving open innovation through crowdsourcing by leading CONVENIENCE.ORG

D BY SORE SPON

“Technology Challenges” for the global community to seek pioneering solutions and collaborations for the company’s complex business challenges. PETRONAS and Microsoft signed a memorandum of understanding earlier this year to empower Malaysia’s digital economy and advance digital transformation across the public and private sectors. In June 2021, PETRONAS established two new technology and research centers at Imperial College London and HeriotWatt University in the United Kingdom to advance technologies in low-carbon and clean energy solutions. “PETRONAS is on the forefront of how companies are leading digital transformation strategies within their operations to drive innovation, future growth and advance its workforce and sustainability initiatives on the world stage. Congratulations to the PETRONAS teams for continuing to deliver leadership and excitement in the digital space,” said NACS President and CEO Henry Armour. Additionally, China-based Meiyijia received an Honorable Mention for its integrated Meiyijia mobile application.

NACS ASIAN CONVENIENCE RETAIL SUSTAINABILITY AWARD WINNER: Seven & i Holdings Co. The winner of the 2021 NACS Asian Convenience Retail Sustainability Award is Seven & i Holdings Co. Ltd. The CocaCola Company sponsored the award. The award recognizes Seven & i for its “Green Challenge 2050” initiative. Launched in May 2019, the environmental declaration establishes goals for 2030 and 2050 related to CO2 emission reduction, plastic countermeasures, food loss and waste/organic waste recycling countermeasures and sustainable procurement. “We believe that reducing waste of energy, resources and raw materials to achieve our goals will lead to cost reductions,” notes the Seven & i website. Seven & i operates around 22,500 retail stores throughout Japan and interacts CONVENIENCE.ORG

NACS GLOBAL CALENDAR OCTOBER 5-8, 2021 NACS Show Chicago, Illinois, United States www.nacsshow.com

MARCH 1-3, 2022

NACS Convenience Summit Asia Singapore www.convenience.org/csa Seven & i aims to reduce emissions from store operations by 30% by 2030 and reduce emissions from store operations to net zero by 2050.

MAY 31-JUNE 2, 2022 NACS Convenience Summit Europe Berlin, Germany www.convenience.org/cse

with about 25 million customers each day. To help reduce the company’s impact on the environment, Seven & i is working with various stakeholders in the value chain to reduce CO2 emissions caused by energy consumption, reduce waste and promote recycling. To address CO2 emissions, the company’s goal for 2030 is to reduce emissions from store operations by 30% and reduce emissions across its entire supply chain in addition to its own emissions. By 2050, Seven & i set a goal to reduce emissions from store operations to net zero. Seven & i is also promoting the reduction of the environmental impact associated with containers and packaging by pledging to make 50% of the containers and packaging used in original products (including Seven Premium) consist of environmentally conscious materials by 2030 and 100% by 2050. The company’s “Green Challenge 2050” aims to raise the organic waste recycling rate to 70% by 2030 and 100% by 2050, and the amount of food loss and waste will be reduced by 50% by 2030 and 75% by 2050. “We’re excited to recognize Seven & i as it pursues significant and compelling sustainability strategies that drive long-term growth and set a high bar for how convenience retailers can improve their operational performance,

We’re excited to recognize Seven & i as it pursues significant and compelling sustainability strategies that drive longterm growth.

OCTOBER 2021 |

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GLOBAL TRENDS

D BY SORE SPON

EasyJoy by Sinopec China launched a number of community-focused initiatives during the pandemic. Among them were contactless vegetable sales at more than 6,100 locations. Customers placed orders via app, and c-store staff loaded the groceries into customers’ trunks.

competitiveness, customer perception and staff engagement,” said Armour. In addition, 7-Eleven Australia received honorable mention for its “cup rescue” initiative, where about 20 million cups have been diverted from landfills. Working with Simply Cups, the retailer is leading the cup recycling revolution in Australia so that takeaway cups can be collected, processed and recycled. After use, customers can deposit their cup, lid or straw into a cup recycling unit, and the stores will arrange to have them recycled.

Sinopec and its EasyJoy convenience stores delivered an impressive level of leadership and community engagement. 154

| OCTOBER 2021

NACS ASIAN COMMUNITY ENGAGEMENT AND SUPPORT AWARD WINNER: EasyJoy EasyJoy by Sinopec China is the winner of the 2021 NACS Asian Community Engagement and Support Award, sponsored by PepsiCo. Throughout the pandemic, Sinopec was able to keep its 30,000 Sinopec service stations and 27,000 EasyJoy conveniences stores open for business to ensure stable fuel supplies. It also donated 16,500 liters of diesel fuel and 1,000 drums of construction machinery lubricants to support the construction of hospitals for pandemic patients and free refueling service for ambulances. In March 2020, Sinopec launched “zero-touch” vegetable sales at more than 6,100 EasyJoy convenience stores in 147 cities in China. Customers could place and pay for orders through the

EasyJoy app by Sinopec, while convenience store staff put the vegetables into their car trunk, ensuring a safe shopping experience. In addition, Sinopec used its extensive logistics network to solve the serious problem of unsalable rural vegetables. As a temporary measure, more than 7,000 EasyJoy convenience stores in 126 cities sold vegetables, helping both farmers sell their produce and residents get daily necessities. The company also went contactless at the pump, launching a one-click refueling function option at its nearly 30,000 gas stations nationwide to provide customers a touch-free service. The feature allows customers to place and pay for orders through the Sinopec mobile app or a WeChat mini program. Since the coronavirus outbreak, Sinopec has also paid close attention to the mental health of its one million employees and joined with more than 380 psychologists and mobilized more than 5,000 Employee Assistance Program (EAP) talents and volunteers to strengthen intervention and guidance for employees by providing them comprehensive psychological support throughout the outbreak. When the pandemic erupted, domestic demand for medical supplies grew significantly and resulted in shortages of medical supplies such as masks, protective suits and disinfectants. Sinopec took prompt action to resume production and leveraged its industrial, logistics and procurement capabilities to produce much-needed medical supplies and materials. “Sinopec showed tremendous leadership during the pandemic to support its customers, employees and the global community,” said Armour. “Sinopec and its EasyJoy convenience stores delivered an impressive level of leadership and community engagement that was not only needed, but necessary.” CONVENIENCE.ORG

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GLOBAL TRENDS

D BY SORE SPON

Fook Convenience Store sites feature proprietary brands and ready-to-eat foods. Customers can pay via contactless facial recognition or order and pay with a QR code. Food safety is priority. Customers can scan QR codes to find out the origin and expiration dates for products.

NACS ASIAN ‘BEST OF THE BEST’ STORE AWARD WINNER: Fook Convenience Store Fook Convenience Store emerged as the winner of the NACS Asian “Best of the Best” Store Award, sponsored by The Coca-Cola Company. The NACS Asian “Best of the Best” Store Award recognizes an innovative and successful Asian convenience store that breaks new ground and sets new innovative standards for the industry. Founded in 2006, Fook has nearly 10,000 employees and more than 2,000

MARK YOUR CALENDAR NACS Convenience Summit Asia is the only place where you can see what future disruptions are taking place today. At the 2022 Summit, you’ll be transported into the epicenter of retail disruption and innovation—Asia—for an immersive look into the future of convenience retailing. Gather in-person with seniorlevel convenience and fuel executives for the latest thinking and knowledge exploration on changing shopper behavior and evolving digital retail technology, as well as interactive store tours of some of Asia’s most iconic brands. No other convenience retail summit helps you uncover unique perspectives, drive value for your organization and build strategic relationships in Asia. Mark your calendar for March 1-3, 2022, and join our mailing list at www.convenience.org/csa.

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| OCTOBER 2021

stores located in Fujian, Jiangxi and Sichuan provinces. Fook is China’s first convenience store chain to integrate office, warehousing and logistics, R&D and manufacturing in the same park. The company is also China’s first enterprise to establish a food bank to prevent food waste and has donated more 100,000 products to people in need. In the technology space, Fook is constructing a solar-powered experimental farm using hydroponic systems. The company has also teamed up with Shaanxi University of Science and Technology to establish a digitized research institute for food development and a laboratory for safety testing and monitoring, and it has adopted cutting-edge technologies for refrigerated transport with multiple temperature zones in the same vehicle. Fook Convenience Store sites are open 24/7 and feature proprietary brands and ready-to-eat foods, Kafei Coffee, F-Gourmet, Foodenvy and Snack Bar, for consumers who are looking for complete meal solutions, afternoon tea or a midnight snack. Through its partnership with JD.com, Fook Convenience Store integrates digital platforms that enhance the customer experience and represent Fook’s commitment to diversifying sales scenarios, as well as enable customers to pay via contactless facial recognition or order and pay with a QR code. Food safety is also a top priority. Fook stores are equipped with a food safety management system where customers can scan a QR code and see where products originated and when they will expire. “To be considered ‘best of the best’ is a huge accomplishment, and we’re proud to recognize Fook for redefining the concept of convenience and implementing solutions that deliver real and compelling value to the customer,” said Armour. CONVENIENCE.ORG

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CATEGORY CLOSE-UP / CANDY

Candy Crush

Turn treats into sweet sales with thoughtful merchandising, seasonal offers and bulk bags. BY PAT PAPE

JUST THE FACTS Candy made up 2.95% of in-store sales and averaged over $79,000 in sales per store in 2020, according to the NACS State of the Industry Report of 2020 Data.

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| OCTOBER 2021

That is typically a big no-no in the world of rif lery since shooters need a steady hand to hit a target, and sugar can make them jittery. But Tucker, who is No. 2 internationally in the 10-meter air rif le competition, fears the opposite reaction. She loves treats and worries that her hands will shake if she doesn’t have any. She once tried giving up her pre-competition sugar indulgence, but that disrupted her routine. “If you’ve been eating the amount of sugar I’ve been eating my entire life, don’t cut it out,” she told a Wall Street Journal reporter. BUYING IN BULK Tucker is one of millions reaching for candy these days. Despite challenges in many categories during last year's lockdowns, “candy did pretty well in 2020,” said Jayme Gough, research manager, NACS. “Monthly sales had a small dip during the initial COVID-19 closures around April but have since rebounded.” According to NACS State of the Industry (SOI) data, “candy made up 2.95% of in-store sales and averaged over $79,000 in sales per store last year. In fact, sales increased 1.9% over 2019,” Gough said, adding that 2021 sales are looking sweet. “Monthly sales numbers are quite a bit higher than they were in 2020. And in terms of profitability, candy margins usually hover at or above 50%, which is high.” CONVENIENCE.ORG

iStock.com/Floortje

ary Tucker, the 20-year-old American silver medalist in Olympic rifle shooting, has a sweet tooth. She prepares for every competition by consuming gummy bears and other sweets.

Industry Sales

% of In-Store Sales 2019

2020

2.93% 2.95%

% of Stores Selling

Avg. Sales/Store 2019

2019

2020

99.8% 99.8%

$78,194 $79,690

iStock.com/Robert Daly; MARCELOKRELLING; PeJo29

Source: NACS State of the Industry Report of 2020 Data

As shoppers tried to minimize store visits during the lockdown, bigger package sizes, more bulk products, on-the-go packaging and resealable bags were in big demand, which was great for Texas Born (TXB), the Spicewood, Texas-based convenience store chain. “Customer count was down [during the pandemic], but candy sales rose,” said Ben Hoffmeyer, vice president of marketing and merchandising, TXB. “There was a big uptick in peg candy and take-home size packaging as people were pantry shopping.” “Customers were eating a lot of the hot and spicy candy and going for mashups, such as candy with chocolate bits, nuts and pretzels,” Gough said. “Mashups of f lavors and textures are keeping the category interesting for consumers.” NACS SOI data indicate that chocolate bars continued to represent the largest percentage of the category’s sales at 43.9% and saw both sales and gross profit increase in 2020, CONVENIENCE.ORG

averaging $34,990 and $18,600 per store, respectively. The second largest contributor to the category was non-chocolate bars, with sales up 14.4%. Looking to the future, IRI, the Chicago-based research firm, predicts the candy industry will hit $39.5 billion in sales by 2025.

The most popular purchase time for candy is between 3 and 5 p.m. on a Friday.

HEALTHY OR JUST INDULGENT? Mintel research reports that 78% of U.S. consumers believe healthy eating is important for their emotional well-being, but IRI notes that only 6%

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.

OCTOBER 2021 |

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CATEGORY CLOSE-UP / CANDY

PER STORE, PER MONTH SALES

2018

$6,000

2019

2020

2021

$5,542

$5,000

$4,000

$3,000

$2,000

$1,000

0 JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

of candy, mint and gum sales come from products defined as “better for you.” According to research by the International Food Information Council, more than one in five consumers admits to stress eating during the pandemic, with one in four turning to comfort food. For that reason, manufacturers are looking for ways to make candy consumption seem less sinful. Ferrara has committed to creating healthier products, and real fruit juice is already a key ingredient in the company’s popular gummy candy. Ferrara has announced all candy in its portfolio will be made with color and flavors derived from natural sources by the end of 2022.

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| OCTOBER 2021

CONVENIENCE.ORG

iStock.com/Viktoriia Kokhanevych

Source: CSX; www.csxllc.com

CATEGORY CLOSE-UP / CANDY

Subcategory Performance % of Sales

CANDY

Avg. Sales/Store

Avg. GP$/Store

Gross Margin %

2019

2020

2019

2020

2019

2020

2019

2020

Chocolate Bars

42.2%

43.9%

$33,028

$34,990

$18,479

$18,600

55.95%

53.16%

Non-Chocolate Bars

22.8%

25.6%

$17,824

$20,394

$10,616

$11,517

59.56%

56.47%

Gum

14.3%

10.7%

$11,214

$8,498

$5,738

$4,360

51.17%

51.30%

Bagged or Repacked Peg Candy

7.8%

8.6%

$6,106

$6,886

$2,943

$3,332

48.19%

48.39%

Rolls/Mints/Drops

5.6%

4.3%

$4,402

$3,362

$3,140

$2,150

71.32%

63.95%

Change Makers/Penny Counter Goods

3.9%

2.5%

$3,061

$2,014

$1,900

$1,172

62.08%

58.22%

Novelties/Seasonal

2.0%

2.2%

$1,581

$1,759

$729

$792

46.09%

45.02%

Bulk Candy TOTAL

1.3%

2.2%

$978

$1,787

$450

$917

45.97%

51.30%

100.0%

$78,194

$79,690

$41,545

$41,256

53.13%

51.77%

“Our organic ingredients are sourced from various places around the world,” said Greg Guidotti, general manager of sugar confections, Ferrara. “For colors, real sources include turmeric, black carrot juice, beta carotene from plants and fruits, spirulina extract, black currant juice, carrot juice, purple sweet potato juice, cherry juice and radish juice.” During a recent earnings call, Hershey executives announced that the company is relaunching its sugar-free line, with a focus on Hershey and Reese’s organic products. “Our sugar-free platform has been performing very well, and we believe this will enable us to reach more households and provide consumers with more great tasting ways to enjoy their favorite Hershey brands,” said Michele Buck, chairman, president and CEO, Hershey Co.

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| OCTOBER 2021

CONVENIENCE.ORG

iStock.com/Floortje, kyoshino

For more information on NACS category definitions, visit www.convenience.org/categorydefinitions. Source: NACS State of the Industry Report of 2020 Data

Power brand blocking lets shoppers browse and mentally process the range more efficiently.

Pat Pape worked in the convenience store industry for more than 20 years before becoming a full-time writer. See more of her articles at patpape.wordpress.com.

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| OCTOBER 2021

SELL MORE TREATS Because good merchandising makes shopping easier for customers, promoting loyalty and repeat visits, Ferrara partnered with industry leading research companies to develop best-in-class shelving principles, which have proved to drive sales and convert buyers in c-stores. “First, retailers should merchandise top sellers in the ‘power zone,’ or between shoulder and elbow level for most shoppers,” said Guidotti. “Second, we recommend aligning the assortment flow with the shopper decision tree, grouping similar products and brands together. Lastly, power brand blocking (merchandising in a horizontal vs. vertical manner), lets shoppers browse and mentally process the range more efficiently and is important to improving shopper navigation. When executed together, we’ve seen these shelving principles deliver 6% growth in sales and a 7% lift in buyer conversion.” Holidays are opportunities to sell more candy. With all the sharing, indulging and gifting that goes on around special days—especially the winter holidays—proper merchandising is crucial.

“Seasonal sales are highly incremental to everyday items,” said Guidotti. “Placing seasonally relevant items—candy corn, candy canes, conversation hearts and jelly beans—on display can capture incremental sales. Ensuring that seasonally relevant displays are at the point of transaction or in high-traffic areas can drive impulse purchases and increase the basket size.” The most popular purchase time for candy is between 3 and 5 p.m. on a Friday as consumers move into the weekend, according to the NACS State of the Industry Report of 2020 Data. Sales also are strong on Saturday afternoons as parents run errands, transport kids to sporting events or take a break for an indulgent energy boost. “I think folks are happy to get out and discover the newest candy products, which might be contributing to the bump we’re seeing with sales this year,” said Gough. Said Christopher Gindlesperger, senior vice president of public affairs and communications, National Confectioners Association, “We couldn't be more excited to have that trend continue into the fall as we begin to kick off the 2021 Halloween season.” CONVENIENCE.ORG

iStock.com/tomeng

CATEGORY CLOSE-UP / CANDY

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CATEGORY CLOSE-UP / CANDY

ADVERTISER INDEX Contact Information

Page

Contact Information

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

Page

Contact Information

Page

Abierto.......................................................................................................5 www.ab-net.us

Essentia Water LLC..................................................................................63 www.essentiawater.com

Placon......................................................................................................34 www.placon.com

ADD Systems............................................................................................45 www.addsys.com

GSTV..........................................................................................................71 www.gstv.com

Premier Manufacturing Inc.............................................................. 5 & 61 www.gopremier.com

Altria Group Distribution Company................ Inside Front Cover AGDCTradeRelations@Altria.com www.altria.com www.tobaccoissues.com

Haliburton International Foods Corp.....................................................79 www.haliburton.net

Republic Brands.................................................................................... 107 www.republicbrands.com

The Hershey Company................................................. Back Cover www.hersheysolutions.com

Refrigeration Design Technologies Inc................................................167 www.rdtonline.com

Hunt Brothers Pizza....................................................................39 www.huntbrotherspizza.com

Southern Wine (Buzzballz LLC)..............................................................65 www.buzzballz.com

Invenco Group Limited ............................................................................3 (877) 515-0939 www.invenco.com

Standard Cognition................................................................................157 www.standard.ai

ITG Brands LLC...........................(Winston Rewards) 21, 40-41, 111 www.winstoncigarettes.com/rewards

Swedish Match North America ..... Bellyband Ad around Mailed Copies (800) 367-3677 www.smna.com

American Security Products...................................................................99 www.americansecuritysafes.com Beam Suntory..........................................................................................95 www.beamsuntory.com/en BIC Corporation......................17 & Bellyband Ad on Show copies www.biclighter.com BioSteel Sports........................................................................................49 www.biosteel.com

Johnsonville Sausage LLC....................................................................... 77 www.johnsonville.com

Brill Hygienic Products Inc........................................... Inside Back Cover www.BrillSeat.com www.EzShelf.com

Krispy Krunchy Chicken..............................................................35 www.krispykrunchy.com

BUNN............................................................................................ 81 www.bunn.com Calico Brands Inc. (Scripto)....................................................................38... (800) 544-4837 www.calicobrands.com Cash Depot.................................................................................................7 (800) 776-8834 sales@cdlatm.com www.cdlatm.com

Liggett Vector Brands Inc...........................................................27 (877) 415-4100 www.liggettvectorbrands.com Living Essentials LLC (5-hour ENERGY).................................30-31 (866) 960-1700 www.5HErewards.com

Cheyenne International LLC.................................................................. 103 www.cheyenneintl.com Coalition for Responsible Tobacco Retailing (WeCard)....................... 121 www.wecard.org The Coca-Cola Company..............................................................13 (800) 241-COKE www.coca-colacompany.com/brands Cookies United........................................................................................69 www.cookiesunited.com Cool New Products Guide...............134-149 www.convenience.org/Media/ NACS-Magazine/Cool-New-Products

KT&G USA................................................................................................133 (214) 299-4200 www.ktngusa.com

Core-Mark International............................................................. 57 www.core-mark.com Diaego Beer Company USA.....................................................................93 www.diageo.com DMF Bait Company..................................................................................53 (800) 332-2248 orders@dmfbait.com www.dmfbait.com

Swedish Match North America (White Owl)..............................67 (800) 367-3677 www.smna.com Swedish Match North America (Zyn)...........................................9 (800) 367-3677 www.smna.com Swisher International Inc. ..........................................................15 (800) 874-9720 www.kayak-outdoors.com

Midway Displays .....................................................................................28 www.midwaydisplays.com

TAAT Global Alternatives Inc..................................................... 115 www.taatglobal.com

NACS HR Forum........................................................................................ 4 www.convenience.org/hrforum

TMG International Inc.............................................................................155 www.tmginternationalinc.com

NACS Retail Membership......................................................................... 6 www.convenience.org/renew

TransAct Technologies Inc..................................................................... 113 www.transact-tech.com

NACS Show Mobile App..........................................................................167 www.nacsshow.com......................................................................................

Trion Industries Inc................................................Insert b/t 24 & 25 & 29 (800) 444-4665 www.triononline.com

NACS Show..............................................................................................125 www.nacsshow.com NACS SOI Summit...................................................................................167 www.convenience.org/SOISummit Old World Industries.............................................................................. 131 www.owi.com Orion LandMark..................................................................................... 163 www.orionfoods.com PDI.............................................................................................. 109 www.pdisoftware.com PepsiCo Inc.................................................................................. 19 www.pepsico.com

Energizer Holdings Inc.......................................................................... 105.. www.energizerholdings.com

PIM Brands Inc............................................................................ 161 (800) 369-7391 www.welchsfruitsnacks.com

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Swedish Match North America (General Snus)..........................55 (800) 367-3677 www.smna.com

Mars Wrigley............................................................................... 119 www.mars.com

Electrolit.............................................................................................72-73 www.electrolit.com

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Swedish Match North America (Game Leaf)..............................47 (800) 367-3677 www.smna.com

TY Inc........................................................................................................59 www.ty.com Vitamin Energy LLC.............................................................................10-11 www.vitaminenergy.com Wonderful Pistachios & Almonds........................................................ 165 www.getcrackin.com Xcaliber Internationa.............................................................................127 www.xcaliberinternational.com ZOA Energy........................................................................................88-89 www.zoaenergy.com

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OCTOBER 2021 |

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The Odd Couple If you happen to be in the small town of Winder, Minnesota, population 220, you may want to stop by the Mobil to take a gander at an odd statue in front of the station. The concrete statue is a polar bear standing over a seal with its paw on the seal’s back. The artist is Ernie Konikson, and the installation is billed by Roadside America as a “1960s-era concrete sculpture of a polar bear finishing off a seal.” Konikson was a Minnesota artist who created multiple concrete statues with many in Polk County, Minnesota, where the town of Winder is located.

Flower Power An abandoned convenience store in Port Austin, Michigan, received a fresh makeover. No, it wasn’t flipped and reopened as a brewery or a restaurant as you might expect. Instead, botanical artist Lisa Waud used the dilapidated c-store as a pop-up installation titled “Party Store.” The immersive project transformed the forgotten store into a sea of fresh flowers grown in Michigan and artificial replicas from state resale shops. Pops of colorful flowers were displayed inside a lit cooler door, while vines of blooms covered shelving and a commercial coffee machine. The original “Sorry, We’re Closed” sign hung in the door. The installation ran through mid-July, and the items used for the project were recycled or reused. 168

| OCTOBER 2021

Rowdy Rivalry Ah, the ole’ Wawa and Sheetz debate among Pennsylvanians. Not only do citizens of the Keystone State argue over which c-store is better, there’s also a debate over which store fans are the most diehard. If Wawa fans believe they are the most devoted, a Sheetz hoax near the University of Pittsburgh may question this belief. The university student newspaper reported that a false “Sheetz Coming Soon” sign was hung on the fence of a construction site in the Oakland neighborhood near campus, but for several days before the prank was confirmed, many believed there was a Sheetz coming soon. Once the news spread it was a hoax, Twitter erupted with Sheetz fans not taking the prank well. Wrote one user: “Going from thinking we would finally have a Sheetz in Oakland to not having one in a matter of a DAY is the emotional rollercoaster I was never prepared for.” It’s safe to say the debate lives on. CONVENIENCE.ORG

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