C&I Retailing Magazine April-May 2020

APRIL/MAY 2020

Glycaemic Index (GI) value = 44

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Glycaemic Index (GI) value = 44

CONTENTS

EDITORIAL

A letter from the Publisher

APRIL/MAY 2020

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42

08 FACTIME

John Paul Drake, Drakes Supermarkets

12 S TORE REVIEW

Kulnura General Store

16 AACS

Looking back on 30 years of convenience and the new challenges posed by Covid-19

20 CATEGORY FEATURE: SALTY SNACKS New category trends and why chips still rule

24 CATEGORY FEATURE: CHOCOLATE BARS

Why chocolate is still an imoportant category line for convenience

28 CATEGORY FEATURE: PIES

The rising popularity of gourmet and vegan pies has yet to dethrone the humble meat pie and sauce

32 PRODUCT NEWS

C&I Choice and all the latest NPD

42 INDUSTRY NEWS: SPECIAL FEATURE

A

s the leading and most trusted source of industry news and updates, I would like to share our thoughts on the COVID-19 situation.

Firstly, we at C&I are committed to keeping our readers informed and supporting our clients through what is an unprecedented situation with significant challenges.

We are also committed to your safety and wellbeing, which is why we have moved the previously planned August 2020 C&I Expo to March 24-25, 2021. This is to ensure that we will deliver the best possible experience for everyone involved.

As we all grapple with new government restrictions, it is important that as an industry we join forces and rise to these challenges together.

At C&I, we will be doing our part to bring you revelant and timelynews on how the unfolding situation is affecting convenience and the wider industry, and what is being provided by way of government, and nongovernment support. We are here to help where we can through our extensive print and digital platforms.

There is no sugar-coating the economic hit to businesses. However, we feel this is not the time to bunker down, but to plan and build a strategy to ensure you emerge at the other side in a strong position.

History has shown that businesses who continue to invest in themselves in challenging times reap the rewards.

Companies that maintain or increase their advertising investments in periods of economic downturn increase their sales and share of market, both during and after the downturn. For example, Heinz and Ford came through the great depression because they never stopped advertising or marketing, so maintained their ‘top of mind’ position.

It is widely accepted that maintaining or increasing advertising budget levels during

economic downturns may be necessary to protect market position vis-à-vis forwardlooking competitors. And with your sales force grounded, you need to continue to project a voice to your trade customers.

1. If a company fails to maintain its ‘share of mind’ during an economic downturn, current and future sales are jeopardised.

Maintaining ‘share of mind’ costs much less than rebuilding it later.

2. If during an economic downturn you should consider maintaining a strong advertising presence while your competitors cut their budgets, you will automatically increase your ‘share of mind’.

3. Advertising through both boom and down times sustains the necessary brand recognition.

4. Maintaining a company’s advertising during an economic downturn will give the image of corporate stability within a chaotic business environment and give the advertiser the chance to dominate the advertising media.

5. Economic downturns reward the aggressive advertiser and penalise the timid one.

6. During an economic downturn, a strong advertising/marketing effort enables a company to solidify its customer base, take business away from less aggressive competitors, and position itself for future growth during the recovery.

7. When times are good, you should advertise; when times are bad, you must advertise.

8. Advertising in an economic downturn should be regarded not as a drain on profits, but as an investment in your recovery.

Regards, Safa de Valois

Simon King reports on the latest confectionery news direct from ISM 2020 in Cologne, Germany

48 INDUSTRY NEWS

NZACS, SPAR and Vodafone

58 OPINION Darren Park

60 PETROL NEWS Dan Armes

63 SUPPLY FIND 4 December 2019/January 2020 | C&I | www.c-store.com.au

Naomi White

James Wells

Keith Berg

Ben Curtis

Jeremy Gough

PRIME TIME

Oak Limited Edition

Allen’s Sour Randoms

Australia’s favourite flavoured milk has announced three new limited-edition flavours, set to excite fans!

OAK are back with exciting releases featuring some of Australia’s most beloved confectionery flavours.

They include an OAK Fantales and OAK Peppermint Crisp, both 600ml and an OAK Gold in 500ml. For over fifty years, only OAK has delivered full on flavour to kill hungrythirsty dead.

The OAK 600ml limited-edition range follows hot off the heels of a stellar 2019 line up with OAK Red Skins, OAK Jaffas, OAK Chokito, and OAK Cinnamon Donut, and offers fans another delicious walk down memory lane with OAK Fantales and OAK Peppermint Crisp.

While OAK GOLD 500ml continues the global domination of the flavour trend seen through Cadbury Caramilk, KitKat Gold, Hersheys Gold, Krispy Kreme Gold, Oreo Golden Cookies – to name a few. The caramel white chocolate is a must have flavour!

OAK Gold is category first launch and Australians will be the first to get a taste of liquid caramel white chocolate that kills hungrythirsty dead!

Allen’s have a new range of Sourz Tangy Randoms.

The random mix of delicious lightly sour fruit flavoured jellies provide a different mix in every bad!

With millions of possible combos of fun shapes, textures and flavours.

There are more than 80 shapes, seven flavours and four different jelly textures. There are millions of possible combinations, so you never quite know what you’re going to get!

Each bag is original!

Pieces include crocodiles, teapots, stars, echidna and trains… the list goes on and on.

There are also no artificial colours or flavours. They will be launching nationally.

Farmers Union ‘Plus’ range

Cadbury’s Easter Treats

Australia’s most loved plain Greek Style yogurt brand expands its functional portfolio with the launch of four products new to Woolworths.

Catering to specific consumer needs, Farmers Union has developed each product with a unique health benefit in mind, based on research into what consumers are looking for in their yoghurt.

Whether they are seeking to incorporate more protein or probiotics into their diet, want more vitamin D or are lactose intolerant, there is now a yogurt variation that caters to everybody.

The range of Farmers Union Greek Style 'Plus' yogurt comes in a 500g format, contains no added sugar and is available nationally at Woolworths stores.

Cadbury has unveiled its 2020 Easter range, featuring a wide range of formats and exciting new treats for chocolate lovers, as well as some old favourites Among the exciting new offers are: Cadbury Caramilk Easter in minieggs format, 110g (RRP $4.69) and 230g (RRP $8.00).

Cadbury Old Gold Gift Box 176g (RRP $10.00), Cadbury milk chocolate coated Cadbury Marshmallow Egg range and a 530g Cadbury Eggcellent Easter Assortment Gift Box (RRP $20.00) featuring milk, dark and white chocolate varieties.

They will also bring back some classics, including Humpty Dumpty.

They are available at leading supermarkets and independent retailers.

Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037 Tel: 02 8586 6292 Fax: 02 9660 4419 E: magazine@c-store.com.au

Publisher: C&I Media Pty Ltd Safa de Valois Commercial Director: Safa de Valois Editorial Director: James Wells

The Intermedia Group takes its Corporate and Social Responsibilities seriously and is committed to reducing its impact on the environment. We continuously strive to improve our environmental performance and to initiate additional CSR based projects and activities.

As part of our company policy we ensure that the products and services used in the manufacture of this magazine are sourced from environmentally responsible suppliers. This magazine has been printed on paper produced from sustainably sourced wood and pulp fibre and is accredited under PEFC chain of custody.

PEFC certified wood and paper products come from environmentally appropriate, socially beneficial and economically viable management of forests.

The wrapping used in the delivery process of this magazine is 100% biodegradable.

DISCLAIMER This publication is published by C&I Media Pty Ltd (the “Publisher”). Materials in this publication have been created by a variety of different entities and, to the extent permitted by law, the Publisher accepts no liability for materials created by others. All materials should be considered protected by Australian and international intellectual property laws. Unless you are authorised by law or the copyright owner to do so, you may not copy any of the materials.

6 April/May 2020 | C&I | www.c-store.com.au

Editor at Large: Keith Berg

Features Editor: Jeremy Gough

Editor: Naomi White

Graphic Designer: Adrian Tipper

Account Manager: Ben Curtis

Contributor: Simon King

The mention of a product or service, person or company in this publication does not indicate the Publisher’s endorsement.

The views expressed in this publication do not necessarily represent the opinion of the Publisher, its agents, company officers or employees. Any use of the information contained in this publication is at the sole risk of the person using that information. The user should make independent enquiries as to the accuracy of the information before relying on that information.

All express or implied terms, conditions, warranties, statements, assurances and representations in relation to the Publisher, its publications and its services are expressly excluded save for those conditions and warranties which must be implied under the laws of any State of Australia or the provisions of Division 2 of Part V of the Trade Practices Act 1974 and any statutory modification or re-enactment thereof. To the extent permitted by law, the Publisher will not be liable for any damages including special, exemplary, punitive or consequential damages (including but not limited to economic loss or loss of profit or revenue or loss of opportunity) or indirect loss or damage of any kind arising in contract, tort or otherwise, even if advised of the possibility of such loss of profits or damages. While we use our best endeavours to ensure accuracy of the materials we create, to the extent permitted by law, the Publisher excludes all liability for loss resulting from any inaccuracies or false or misleading statements that may appear in this publication.

Copyright © 2020 - C&I Media Pty Ltd.

Average Total Distribution: 21,108 AMAA/CAB Publisher Statement Period ending 31 March 2019 PROUD MEMBERS OF:

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FACE TIME

A LIFE LIVED IN RETAIL

It’s a case of work hard, play hard for Drakes Supermarkets assistant general manager John Paul ’JP’ Drake.

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his year marks 30 years of official employment at Drakes for me. But I guess I’ve spent my whole life in the business. It started with me in the car with dad (Drakes founder Roger Drake), driving around from store to store from the time I could walk.

And then later, on the way to school we’d have to stop and visit two or three stores before we’d get there. And I’d end up being late to most of my sporting events because he wanted to see this shop or that, so technically, my whole life has been in retail. I have two sisters, Angelique and Susan who work in the business as well.

It was good growing up in a family business. I used to steal things from the shop, lollies and things when I was little. But I was quickly cottoned on to. I thought it was a novelty getting dragged to stores. It could be an inconvenience every now and then if it made us late to things, but I didn’t know any different.

Dad was always working so that meant going to the shops quite often. But back then we were lucky, we didn’t have Saturday or Sunday full day trading, it was just MondayFriday and a half day Saturday. I’d play sport for half of Saturday and spend the rest collecting trolleys while waiting for dad to finish.

I played literally every sport in school. Football, rowing, tennis, hockey… almost every sport possible. And I played state level baseball for South Australia and I also played for Australia. I used to race Go-Carts as well.

I’m still very active, I love rock climbing and wakeboarding, snowboarding, skiing and racing cars.

I race in the Australian Prototype series. I’ve been doing that for six years. I always wanted to be a Formula One driver, but I never had any money. Dad was always against it. And he always said you need to make your own way. He supported us for anything health related, but otherwise you were on your own.

8 April/May 2020 | C&I | www.c-store.com.au

I do like adrenalin. Things that push you a little bit. I’m more inclined to go down the track where things are pushing the limit a bit more.”

John Paul Drake

John Paul Drake developed a love of retail early, while working in the family business, Drakes Supermarkets

The series is five national rounds a year, and I give up an arm and a leg to be away from family to do that.

Training wise I do CrossFit to keep fit because you need to be quite mentally strong to race cars, believe it or not. But I really train to eat. And it keeps me mentally strong.

I do like adrenalin. Things that push you a little bit. I’m more inclined to go down the track where things are pushing the limit a bit more. But in saying that, to me they don’t seem extreme. The safest place to drive fast is on a racetrack, so I don’t see it as dangerous or risky, it’s just another decision to make.

Dad has always said hard work pays off. He has a saying that the person who works the hardest gets the most and he’s right. He was always saying those things to me, always telling me to work harder to get more. Lately, he’s changed it to say the harder you work, the luckier you get.

And I think happiness has started to come into the mantra a bit more as he’s aged. He now says you need to be happy in what you’re doing and if you are, it doesn’t quite feel like work.

John Paul Drake is also a big fan of car racing

FACE TIME FEATURE We used to be driving somewhere and he’d be listening to (self-help author) Napoleon Hill and others and I’m pretty sure at the time I thought I was getting brainwashed, but now I can see they were all just saying believe in yourself.

Dad’s always the one to say back yourself, you’re the only one who can 100% back yourself.

He’d always say the customer is the greatest asset and he had a saying that the customer is always right, that’s rule number one. And if they’re not, refer to rule one. It’s an old school mentality, but he’s right to an extent.

But it is different today, there are so many touch points where customers can contact you. They’re happy to tee-off until you offer to speak in person. And if I spent my time on nay-sayers, I’d never get anything done, so some things need to be taken with a grain of salt.

My role, as assistant general manager, is a bit of everything. from leasing to store layout and design and takeover, to acquisitions. I’m a psychologist, a psychiatrist, an accountant and a lawyer, all in one.

It’s a broad brush, but I do have focus areas in media and the digital side. Because I think there will be a big role for us to play in that area. No one else is really in that space in the small scale, and we see ourselves as the largest independent supermarket. We’re a small player in a very big pond.

I was the state manager for Drakes in Queensland before I moved back to Adelaide five years ago and I’m a major advocate for South Australia. I’d say it’s one of the best states in the world. There’s minimal traffic, it’s affordable and we have great food and drink. It makes for a great combination.

And I couldn’t think of anywhere better to raise children.

But the key is to keep the state good enough that my daughters, who are aged five and six, will want to stay here when they grow up, so they don’t move interstate to chase more money.

The reality is there’s a lot of room to grow, but there’s a lot happening in South Australia. Hopefully we’re riding that wave enough that people start to think ‘Sydney is a hole, I don’t want to have to drive two hours to get to work or spend 90 minutes on a train’.

And the way the work/life balance is changing for Generation X and younger generations, we’re now working 40 hours per week instead of 70-80 hours. That’s time you could be spending with your family, why would you want to spend that commuting. Come to Adelaide, you can drive

Roger and John Paul Drake at the 2020 Drakes' golf day

It was good growing up in a family business.

I used to steal things from the shop, lollies and things when I was little. I thought it was a novelty getting dragged to stores.”

John Paul Drake

Roger and John Paul drake at a company family picnic day

from one side of the city to the other in no time, there aren’t any traffic jams.

Adelaide may not have the sight-seeing, but we have the lifestyle. But if we can’t have a state that’s growing, we won’t reach our potential. But I get the feeling it’s changing, and I think the new space agency will put us on the map.

As for Drakes, we want to be Australia’s leading retailer and wholesaler within 10 years. There are interesting times ahead, very, very interesting. Opening the warehouse has been the most exciting thing that’s happened in my career, and the most exciting for the business as a whole. We only have early results but they’re fantastic, so expect to see big things come out of South Australia! C&I

John Paul Drake hard at work

John Paul and Roger Drake celebrate opening their distribution centre April/May 2020 | C&I | www.c-store.com.au 9

24-25

MARCH 2021 Melbourne Convention & Exhibition Centre C&I Expo brings retailers and suppliers together over two big days of business.

The retailer audience consists of owners and operators of convenience stores, service stations, independent supermarkets, corner stores, newsagents, mini marts and foodservice stores that have a convenience offer. Suppliers and wholesalers are also more than welcome to exhibit and attend.

Visitors experience the latest in convenience products, services and merchandising.

For more information visit www.candiexpo.com.au

RESCHEDULED DATES For Australia’s largest and most important trade event for Convenience retailers

Media pty. LTd.

ORGANISED BY: Interpoint Events Pty Ltd in conjunction with C&I Media Pty Ltd and the Australasian Association of Convenience Stores 41 Bridge Road Glebe NSW 2037 Ph: 1300 789 845 | Fax: 02 9660 4419 Email: exhibition@c-store.com.au www.c-store.com.au

FEATURE STORE REVIEW

KEEPING THINGS LOCAL Dee Patel loves interacting with locals

The bush fires around here were pretty bad. People had to leave their homes and local businesses suffered too. It really affected the community.”

Dee Patel

T

he small town of Kulnurra on the Central Coast of NSW sits roughly 30km inland and north-west of Gosford, in a mountainous area home to cattle farming and orchards.

And its local store, the Kulnura General Store, has become a lifeline for locals who rely on it for staples and who would otherwise be left to travel the estimated 25-30km to the nearest Coles or Woolworths.

Trading is also boosted by its location on the Tourist Drive 33, a historic road with a convict past that links the Hunter Valley to the lower Central Coast via the scenic town of Wollombi, popular with Sydney day trippers and travellers.

Given its position, the store could rely on providing the bare basics and still succeed. But they have worked hard to establish themselves as a community hub of sorts, offering everything from a considered cafe menu to printing hub services, including scanning and faxing.

It’s also a petrol station, liquor store and a post office. And has the only ATM within close proximity to the town. As store manager Dee Patel jokes, it’s five stores in one.

Despite not having known the area well prior to taking over the existing convenience store business, Ms Patel said business was going well and locals had been very welcoming.

“The store is very community based. We’re in a rural area, it’s the countryside and there are only a couple of other stores around here. It’s a bit different to other commercial stores. It’s more of a family owned store, you get that feeling coming in here,” she said.

“The locals have been pretty great since we took over. They’re really welcoming, and they appreciate the changes we made to the store, it’s much more modern.”

12 April/May 2020 | C&I | www.c-store.com.au

When store manager Dee Patel opened the doors to the Kulnura General Store on December 24, 2018, she was heartily welcomed by locals.

“We didn’t change any of the interior when we took over, it has a country style look which we’ve kept. We just changed the basic equipment and added some safety features. We cleaned it up a little bit, too. The former owner had a lot of things in place, we’ve pared it back and only kept the items people really need.”

Locals are also reliant on the store’s postal service, which has taken on nearby Mangrove Mountain’s service in a temporary arrangement.

“At the moment we’re running two postal services, because the Post Office in the town of Mangrove Mountain closed down.

We have people from there coming here and saying ‘why don’t you buy our shop!’. They expect us to start running the business there as well!”

Their long opening hours are another drawcard. They operate seven days a week, Monday-Saturday 7am-8pm and Sundays 8am-8pm. They have 10 staff and while most are local, a few make the 40-minute commute from the coastal side of the Central Coast. Many chose to stay on after the store was taken over and have proved a great source of local knowledge to Ms Patel, who is slowly learning the customer’s names.

“My favourite part of the business is getting to chat with locals every day. We’ve been here a year now, so I try to remember everyone’s name, but sometimes I stuff up! But they forgive me for it.”

The café serves up crowd favourites of burgers, chips and fish and chips, sandwiches and wraps. As well as kebabs and homemade Indian curries and pies. Pizzas, fried appetisers, cakes, donuts and coffee are also popular.

“The hamburgers are really popular, as are the Indian curries and the kebabs are pretty popular too. We have a chef in the café who has been here in the area for 10 years and he’s loved by the locals,” she said.

STOREFEATURE REVIEW “Every now and then on the weekend we do a BBQ outside. We have a covered area outside where people can sit and have a drink. It’s a nice little picnic area, the locals come every night and have a chat. It’s a meeting point for the whole town.”

Reflecting this community spirit, they are also big on giving back.

The store has been fundraising for the local Rural Fire Service brigade, who worked tirelessly to defend homes in the area when the bushland surrounding Kulnura and Mangrove Mountain was ravaged by fire in December.

Many residents lived under the very real threat of losing their homes for weeks as the mega-blaze, termed the ‘three-mile’ fire after multiple fire-fronts merged, burned.

“Giving back to the community is important to us. The town has a country fair in October to support local farmers and families and we sponsor that, and we sponsor the Mangrove Mountain junior football team. We give the local childcare centre a few vouchers for a couple of hundred dollars for their Christmas raffle, too.”

“Wherever there’s a fundraising opportunity we jump on it. We’re a community business and I believe the more you give back, the more you bring in. We appreciate what the locals do for us in stopping in here to shop and spending their money here. We’re all supporting each other in Kulnura.” C&I The cafe serves a wide range of food

It affected not just the day-to-day lives of locals – many of whom were temporarily dislodged from their homes, but also put a strain on RFS crews who battled to keep it under control.

The store is very community based. We’re in a rural area, it’s the countryside and there are only a couple of other stores around here. It’s a bit different to other commercial stores. ” Dee Patel

“The bush fires around here were pretty bad. People had to leave their homes, around Christmas time. A lot of people weren’t around so the businesses suffered too. It really affected the community and with the road closures, people weren’t able to get back to their homes,” she said.

Located in mountainous terrain, Ms Patel said when natural disasters hit, they tend to hit the area quite hard. Including storms.

The store also sells liquor

“We recently had a massive storm here and the power was out for five days. But we run on a generator, so we could stay open.

But people had no cash and no way to get any out, so we tried to help them out by putting some things on credit.”

“There is another petrol station nearby, but it had to close because they don’t have a generator.”

As a gesture of gratitude, the store held a fundraiser for the local RFS brigade, to spread some Christmas cheer to exhausted families and to celebrate their first year in business.

The store is popular with both locals and tourists

April/May 2020 | C&I | www.c-store.com.au 13

Join AACS The peak body for the Australian Convenience Store industry, celebrating over 30 years serving the industry

AACS: EVENTS THROUGHOUT THE YEAR • • • • • • • • • • •

AACS supplier round table meetings AACS State of the Industry Report launch AACS Convenience Leaders Summit AACS Gala and Awards Dinner AACS Education AACS CEO Forum AACS Overseas Study Tour AACS Peter Jowett Industry Award AACS Women in Convenience program AACS weekly e-newsletters AACS Downunder Study Tour

The Australasian Association of Convenience Stores (AACS) is the champion of the convenience industry and now in 2020 we celebrate our 30th anniversary. We have a long history serving retailers and suppliers; we’ve witnessed seismic changes, game-changing innovations, shifts in consumer behaviour, new regulations and much more.

As we highlighted some years ago when we produced our ‘AACS Convenience 2020’ report important elements to success remain collaboration, innovation and differentiation.

As we look ahead to the New Year and new decade, our path is clear: we’re focused on helping you understand where we are, where

we’re going, how we’ll get there and how we may add value to your business – large or small.

To enjoy the diverse benefits of AACS membership, contact AACS CEO Jeff Rogut on jeff@aacs.org.au for more information.

Visit www.aacs.org.au.

Become a member today!

Contact jeff@aacs.org.au

www.aacs.org.au

ALL AACS MEMBERS RECEIVE THE FOLLOWING BASIC BENEFITS: • • • • • • • • • •

The annual AACS State of Industry Report Val $2500 Comprehensive networking opportunities Meetings with prominent Industry speakers Government lobbying on issues impacting on the industry International and local study tours Access to international speakers Convenience specific training Access to research and presentations Weekly eNewsletter 10% discount on all AACS training programs

Jeff Rogut AACS CEO

Consider the long history of strong performance from our industry as a reason for confidence in convenience in the future, despite the implications of the Coronavirus reverberating around the country and across the world.”

- Jeff Rogut, AACS CEO

Further information: Jeff Rogut Chief Executive Officer Australasian Association of Convenience Stores Ph: +61 467 873 789

GROWING EVERY DAY With 2020 being the 30th anniversary of the birth of the Australasian Association of Convenience Stores (AACS) as the peak body, strongest voice and main advocate for the convenience industry, we’ve spent some time tracing the history of the channel over this time.

M

ore than just a walk down memory lane for those of us of a certain vintage, it’s an exercise that has also shone the spotlight on the strong performance of the convenience channel over the years.

The growth of the industry over the past three decades has been truly astounding. Many of the core categories have survived the changing times but the product ranges within those categories have evolved markedly. In some respects, the store environment of 1990 would be unrecognisable to today’s convenience shopper.

But the sheer weight of numbers presents an interesting case study.

In 1990, the number of people working in convenience was increasing as the future potential of the industry was starting to be recognised by many fuel driven companies. By the end of the year, the industry comprised 464 stores and generated sales of $467 million.

Fast forward ten years and it was a vastly different landscape. The value of the illegal sale of chop-chop tobacco alone in 2000 had reached $500 million (in hindsight an alarming glimpse of the future), energy drinks arrived to begin to drive beverage sales and the AACS reported the industry’s 1,164 stores delivered merchandise sales of $1.47 billion.

Another ten years on and the remarkable growth trajectory had continued. By 2010, the milk price war was on the

16 April/May 2020 | C&I | www.c-store.com.au

horizon, $1 coffee was launched, and the industry’s 3,541 stores delivered merchandise sales of $5.6 billion, according to the AACS State of the Industry Report at the time.

At last count, of course, the value of the channel had increased further. As at the end of 2018, the industry comprised 6,644 stores with sales of $8.597 billion.

Later this month, the AACS will unveil the State of the Industry Report for 2019 and we expect history to repeat itself, with another result of year-on-year growth on the cards.

And in the meantime, consider the long history of strong performance from our industry as a reason for confidence in convenience in the future, despite the implications of the Coronavirus reverberating around the country and across the world.

COMING UP: THE AACS STATE OF THE INDUSTRY REPORT

It won’t be long now until the AACS State of the Industry Report is launched and we can compare - and-contrast the convenience channel’s performance in 2019 against other industries and in relation to previous years.

Obviously, it was a challenging year. This year will be more challenging still. But 2019 was also a year when innovation was taken to the next level and Aussie convenience stores elevated their offers to be at the global forefront.

A full review of the industry’s performance for calendar year 2019 will be available in the next issue, where we’ll take-alook at category highlights, high performance products, key movements and opportunities for future growth.

Given the current, unprecendented challenges presented

by Coronavirus, AACS is putting the health and safety of our members first. Regrettably, this has meant we have had to either cancel or defer many events for the foreseeable future.

Nevertheless, the launch of the AACS State of the Industry Report is important for everyone in our industry, so our plan to launch this in late April remains unchanged.

We’ll use an online presentation with the exact date, links to the presentation and full report to be advised well ahead of time. Stay tuned to the AACS social channels for updates and don’t miss out.

The AACS State of the Industry Report is available exclusively free to AACS members. Others can purchase a copy by contacting jeff@aacs.org.au.

COMMUNITY AT THE CORE OF CONVENIENCE

With people shying away from visiting larger centres, our stores offer consumers a convenient and preferred destination in many cases.

As convenience operators plan for the short and long term, not only in terms of protecting their own businesses but also serving communities and customers, the AACS is working hard to encourage and facilitate government support for members during this trying time.

Convenience stores are local places for people to buy milk, bread, food and beverages and other essential items.

We want to continue to be able to do this in the most convenient way possible, and this means keeping as many stores trading, and for longer hours, as possible.

That’s why your industry association will continue to seek government support in all areas affecting our capacity to do this: human resources, supply chain, fuel, essential services and more.

Finally, the AACS recognises and thanks our industry operators and the front-line staff who continue to work serving their customers and communities in these unprecendented and very challenging times. C&I

With people shying away from visiting larger centres, our stores offer consumers a convenient and preferred destination in many cases.”

- Jeff Rogut, AACS CEO

April/May 2020 | C&I | www.c-store.com.au 17

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SALTY SNACKS

SEDUCTIVELY SALTY Why we're all a little bit addicted to salty snacks

I

t seems that in Australia, we’re all addicted to snacks.

Especially the savoury kind. And as eating trends evolve from an emphasis on a large breakfast, lunch and dinner to lighter meals supplemented by frequent snacking, the demand for on-the-go salty snacks is only increasing.

Recently published data from market research company Roy Morgan found nine in 10 Australians consume packaged snacks in an average week.

Of these, savoury snacks – mainly potato chips, were the most popular category with 66% of us consuming them weekly.

Our appetite for snacks in general appears insatiable. According to the State of Snacking report released by Mondelez last year, Australian consumers eat as many snacks as they do meals per day.

This is especially true for Millennials and younger generations who are embracing the trned for eating smaller portions more frequently with gusto.

And reflecting how in-tune C-stores are to the evolving snack size – not quite a meal but more substantial than a stop-gap between 20 April/May 2020 | C&I | www.c-store.com.au

meals - American convenience chain QuikTrip have coined their own term on the eating habit: “Snackle”, described as being part snack, part meal.

Interestingly, Roy Morgan found there was a generational divide when it came to snack preferences. While millennials look to snacks that boost their mood and/or brainpower and are more likely to opt for gluten free options, Baby Boomers seek out snacks low in sugar, fat and calories.

This research fits with further Roy Morgan findings showing the second leading snacks category was healthy snacks, encompassing rice crackers, muesli bars and breakfast bars.

The category with the lowest consumption was sweet biscuits, indicating Australian consumers are moving away from sugarladen foods.

One brand covering all of these snack bases is Cobs Fine Foods, whose range of popcorn and assorted snacks fall within the growing better-for-you category, delivering on consumer tastes for low sugar, low calorie and gluten free options, while satisfying our need for salt and flavour.

SALTY SNACKS

Innovation plays a core role in snacking category growth; in 2019, it accounted for 10.9% of sales, which is 1.4% more than in 2018. Innovation plays a supporting role to the core range as new products help drive conversion to purchase,” - A PepsiCo spokesperson

Cobs were the first to release a range of ‘lightly salted slightly sweet’ flavoured popcorn, which remains their best seller, that hits on the elusive balance between healthy and tasty.

Their products also contain few ingredients, all of them natural and despite fitting the health niche, they have maintained a broad appeal. Brand manager Samantha Moriarty said their products are as popular with families, singles and couples as they are with health-conscious consumers.

“Snacking is on the rise in Australia, as consumers lead busier lives, often resulting in a transition from the traditional three meals a day and one big shop per week mantra. Portable snacks that deliver convenience, taste and are better for you, are now all the rage, leading to an explosion of new offers beyond traditional salty snacks like potato chips to healthier options”.

“This trend has not only been seen in major supermarkets but also convenience stores, as consumers look to this channel as a quick and easy way to ‘top up’ when they’re on the go.

Convenience stores are an important channel for Cobs, as we want to ensure our delicious snacks are available to our consumers when they need us most.”

Cobs have also worked hard at innovation in NPDs. Including their Pop’d Chips range, made from a potato, rice and corn blend that’s air popped to replicate the crunch of potato chips, without the frying.

“This means they have at least 60% less fat than regular potato chips, making them a healthier option for consumers.

Consumers love the taste and benefits of this range, proven

by Pop’d Chips winning ‘product of the year’ in the healthy snacks savoury category for 2020. There are now four delicious flavours to choose from as we’ve just launched salt and vinegar in Woolworths and select independents.”

Another recent release is their Corn Puffs in cheesy cheddar, sour cream and chives and barbecue. And their Ancient Grain Corn Chips, made from corn, chia seeds, sorghum and quinoa in cheesy cheddar, sea salt and barbeque.

A survey from Canstar Blue last year found the top five brands for Australian consumers were Smith’s, Red Rock Deli, Kettle, Doritos and Pringles. Other mentions included Thins, Twisties, Grain Waves and Cheezels.

Of the 3,100 people surveyed, just 13% said they didn’t eat chips.

However, for 32% of people, it was their main snack choice.

Of the flavours favoured, original, salt and vinegar and cheese were the top flavours. Interestingly, Canstar found those aged 70 and older preferred original, while salt and vinegar were the pick among 18-29-year-olds.

A PepsiCo spokesperson, whose brands include Smith's, Twisties, Doritos, Red Rock Deli, Sakata and Grain Waves said snack foods continue to be an essential part of the convenience channel. Adding last year saw a strong growth of 6.3% MAT and the category significantly outperformed other impulse categories, including beverages, by 0.9%.

April/May 2020 | C&I | www.c-store.com.au 21

SALTY SNACKS

Portable snacks that deliver convenience, taste and are better for you, are now all the rage, leading to an explosion of new offers beyond traditional salty snacks like potato chips to healthier options,” - Samantha Moriarty, Cobs

AT A GLANCE • Innovation plays a core role in the snacking category.

• Salty snacks are a growing market and snack trends are evolving.

• Baby Boomers prefer the flavour of original chips, while Millennials prefer salt and vinegar.

• Research shows that nine in 10 people consume packaged snacks in an average week.

And while nuts, jerky and healthy snacks were all experiencing growth, chips remain at the heartland of the category, they said, accounting for 81% of sales.

The company have a big focus on innovation and NPDs and are excited about the year ahead.

movie or sport related) can help harness the shopper’s interest,” Mr Park said.

Adding it was equally important for brands to look to bring innovative and well researched NPDs to the market.

“2020 has already seen some exciting additions to PepsiCo’s portfolio including new flavour innovations and new ranges.

Smith’s launched Poppables, a new format of light and crispy, potato snacks for the brand. In February we launched Mash Ups, combining some of our consumers’ favourite snacks Doritos, Twisties and Cheetos, into the one pack,” they said.

“With shorter product life cycles and the demand for greater variety, continual pressure is put on NPD teams to produce new product opportunities. Managing the risks associated with this for both manufacturer and retailer must be informed by data and a feel for the category and shopper. In effect, it must be a team effort. For categories such as salty snacks which is highly impulsive, new news drives interest and trial.”

“Our latest innovation, Doritos Flavour Shots comes in a readyto-go format, so you can get your iconic Doritos flavour boost fast and keep going with your day, making it an ideal product for the convenience channel.”

Freedom Foods Group brand manager, cereal, snacks and beverages, Amy McDonald, said they had seen a huge increase in consumer demand for savoury snacks, particularly those high in protein and fibre and plant-based products.

“Innovation plays a core role in snacking category growth; in 2019, it accounted for 10.9% of sales, which is 1.4% more than in 2018. Innovation plays a supporting role to the core range as new products help drive conversion to purchase and increases basket spend with shoppers more likely to buy both core and new products.”

“Overall, as people are making the switch from meals to snacks, they’re looking to still get that nutritional health benefit they would from a traditional meal. With this we think we’ll see increased demand for protein (both meat and plant-based), sugar reduction (or switch to more natural sugars), prebiotics and probiotics and alternative flours (such as chickpea, maize, coconut). We also think the importance of ethical sourcing and packaging will grow,” Ms McDondald said.

Research by Nielsen found that just 10 per cent of consumers considered themselves loyal to brands and spend an average of 15 seconds looking for items on a shelf. Meaning when it comes to snacks, while we may be decisive, we’re choosing products based on more than flavour or product satisfaction.

As CEO of United Convenience Buyers Darren Park said it was important for retailers to make it easy for consumers to access on the go snacks, setting competitive prices, using promotional mechanics and ensuring product availability.

“Having a variety of snack categories represented for every daypart ensures your outlet can be a snacking destination through the day. Apart from the primary display area, many snacking purchases are made from secondary locations in the store. Finally, POS and seasonally relevant display theatre (E.g.

22 April/May 2020 | C&I | www.c-store.com.au

Ms McDonald said Freedom Foods was always looking to NPDs that fit into this niche, especially with a health-focus and in better-for-you products. Such as their Messy Monkeys range, aimed at adding ‘hidden goodness’ like chickpea, sorghum or A2 Protein Milk into their kids snack line.

“As a company our ethos is to ‘make food better’, this is at the forefront of every product we make. When developing new products, we work in tandem with our dieticians and always look to follow Australian dietary guideline recommendations.

This means prioritising protein and fibre, reducing refined sugars and sodium. We also want to tap into emerging health trends, such as gut health, through creating prebiotic offerings,” she said. C&I

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CHOCOLATE BARS

A HIGH BAR The impulsive chocolate segment is still showing the way

T

he ongoing health and wellness trend appears to have done little to curb the enthusiasm of Australian consumers for indulgent treats like chocolate bars. And that’s great news for petrol and convenience stores.

Recent data from market research company Roy Morgan showed a staggering 14.2 million Australians aged over 14 consumed chocolate in an average four week period, with chocolate bars very much preferred over chocolate blocks or boxed chocolates.

The research showed nearly 11 million Australians eat chocolate bars (77.5% of all Australian chocolate consumers) and these include leading brands such as KitKat, Cadbury Bars, Cherry Ripe, Mars Bars, Snickers and Violet Crumble.

While grocery is often the domain of families doing the weekly shop and people who are looking for shareable chocolate formats, convenience is more attractive to the ‘on the go’ consumer who typically favour chocolate bars. These may be consumers who are popping out from the office for an afternoon treat, or just people making a spontaneous purchase at the check-out to keep them fuelled while on the road.

According to the most recent State of the Industry Report from the Australasian Association of Convenience Stores (AACS), confectionery remains the most impulsive category in the channel with 28% of these shoppers buying more than they planned.

Both grocery and convenience are key channels for chocolate bar sales and target different demographics of buyers, although convenience does have an inflated importance with the segment.

According to Nestlé, which boast leading brands such as KitKat and Milky Bar, overall confectionery sales in the convenience channel are about 12% of the scan dollar value of those in grocery. While sales of chocolate bars in convenience equate to more than 34% of chocolate bar sales in grocery.

As bars are disproportionately more important to convenience than other confectionery formats, it is more important than ever that operators manage the segment well in order to maximise its potential.

Operators need to focus first and foremost on getting the range right and on creating eye-catching displays in prominent locations. Chocolate bars are the most likely segment to create incremental unplanned purchases, driving an increase in shoppers’ basket sizes, and ultimately drive a greater volume of sales in store. Front counter sales are the primary point of purchase for chocolate bars in store, so these have to be right.

Mondelez International, who own the Cadbury brand and boast the likes of Cherry Ripe, Twirl, Cadbury Dairy Milk, Crunchie and Boost, said that it is vital operators understand the chocolate bar consumer. And stores need to know when and why customers are purchasing so they can have the right offer for the right shopper mission.

Mondelez said the data shows that chocolate bar consumption generally peaks during the afternoon period, but does stretch across the day.

24 April/May 2020 | C&I | www.c-store.com.au

CHOCOLATE BARS

Operators need to ensure they offer a variety of chocolate brands to cater to both customers who know exactly which product they are after, and those who are looking for inspiration.

Mondelez director marketing, chocolate, for Australia and New Zealand, Paul Chatfield, said there is a real benefit to stores ensuring they have an appropriately broad range available.

“Australians do have a broad repertoire, driven by the desire for different eat experiences and this is delivered in both taste and texture,” he said. “The broad range of brands in the market deliver to the breadth of experiences Australians are seeking.”

As with all confectionery, innovation is critical in driving chocolate bar sales as it creates excitement around the segment and encourages new consumers to trial new products.

“The most successful offers are truly new and innovative,” said Mr Chatfield. “Our most recent launch in bars was Cadbury Twirl Caramilk, which has become the most successful bar launch of the last decade… continuing the amazing response we saw from Australians for Caramilk.”

Mondelez said it has also ‘rejuvenated’ Cadbury Cherry Ripe, one of Australia’s oldest and best loved bars.

“A new advertising campaign, ‘The Pleasure is All Mine’, was launched in 2019, and celebrates a diverse range of strong Australian women,” said Mr Chatfield. “This increased focus on Cadbury Cherry Ripe has driven strong momentum with an increase in values sales, penetration and market share.”

Nestlé – who said genuine innovation for chocolate bars in the convenience channel makes up approximately 10% of sales in any year – is also focussed on bringing new excitement to the segment.

“2020 has already been a busy year for new chocolate bars from Nestlé with the launch of KitKat Honeycomb Smash

65g and KitKat Double Cookies and Cream 45g which have been available across the market from January and are selling well,” said a Nestlé spokesperson. “Upcoming new product developments on KitKat and Milky Bar will also shortly be available to delight and excite shoppers.”

Nestlé said that in 2018 KitKat Gold 65g was one of the top selling new share bar lines, and KitKat Chunky Cookie Dough was one of the top-selling new medium chocolate bar products in convenience.

The company said shoppers are open and receptive to new innovations at any time of the year, besides seasonal windows such as Easter and Christmas where consumption moves away from immediate consumption lines to other formats.

Customers have become accustomed to seeing new products on the shelves on an increasingly frequent basis. There’s always a ‘buzz’ around new product launches, line extensions and new formats that provide brands ‘new news’, ‘talkability’ and some additional energy to help them fly off the shelves.

The most successful offers are truly new and innovative.

Our most recent launch in bars was Cadbury Twirl Caramilk, which has become the most successful bar launch of the last decade.”

- Paul Chatfield, Mondelez

“Everyone who shops in the channel is open and receptive to purchasing choc bars on any mission in store,” said the Nestlé spokesperson. “Chocolate bars are primarily a repertoire purchase for many shoppers so it is important that retailers maintain a strong presence for top-selling lines and those brands that have regular marketing and promotional support.

Robern Menz, who owns the popular Violet Crumble brand, said beyond launching an entirely new product, offering different formats or versions of a much-loved chocolate can also have a big sales impact.

In October last year, the company launched its Violet Crumble Dark Chocolate 50g bar, and it has also just launched the Violet Crumble ‘Bunny’, a 30g milk chocolate bunny with pieces of Violet Crumble. In South Australia, it has also released a new version of Menz Mango FruChoc.

April/May 2020 | C&I | www.c-store.com.au 25

CHOCOLATE BARS

The company’s marketing manager, Polly Love, said it made sense to capitalise on brand awareness and presence that was already out there.

AT A GLANCE • Roy Morgan research shows that 14.2 million Australians aged over 14 years consumed chocolate in an average four week period.

• Confectionery as a whole remains the most impulsive category, with 28% of shoppers buying more than they planned.

• Including chocolate bars in meal solutions obviously provides extra opportunity for category sales and category penetration.

• There’s always a ‘buzz’ around new chocolate bar product launches, line extensions and new formats that provide a brand some ‘new news’.

“Consumers are always keen to try different versions of their favourites, some are what we call short-term rotate flavours such as Menz Mango FruChocs, others are more permanent such as Violet Crumble Dark Bar,” she said. “In any case it's ‘new news’ for the brand and gives marketers an opportunity to speak to consumers and generate interest and excitement.”

Robern Menz said it’s also keen to explore partnerships and collaborations in order to reach new audiences and their new Golden Gaytime Violet Crumble is available in convenience stores and in grocery across Australia.

“There’s a lot of focus on nostalgia around confectionery at the moment,” said Ms Love. “Consumers are very passionate about seeing chocolates and sweets from their childhood back on shelves and the energy created by media, online and word of mouth can be great for sales.”

Stores that capitalise on the excitement surrounding new product launches and line extensions with bold displays and point of sale material will then drive sales. Having a full and varied range is important as many customers go into stores with the exact product in mind that they want to buy. However, these promotions and materials can help convert those impulse shoppers who enter a store without a premeditated idea of what they are going to buy.

26 April/May 2020 | C&I | www.c-store.com.au

Bundling bars with drinks or other foods is also a great way to drive additional sales, including chocolate bars in meal solutions obviously provides extra opportunity for category sales and category penetration.

Many of the key retail banners also have a range of multiple purchase promotions where two bars are promoted at a single price point, while other retailers link chocolate bars to a discount on fuel purchase.

“Two-for-deals are also a great way to drive incremental sales, and this promotional mechanic has long been used in the convenience channel across many impulse categories to drive additional dollar sales and margin for the retailers,” said Ms Love. “This style of promotion seems to suit the shopper in the convenience channel as it can be ‘one for now, one for later’ or ‘one for me and one for you’, as you surprise the passenger in your car with a sweet treat.”

While the health and wellness trend continues to gather momentum, there is no shortage of evidence to suggest that convenience consumers still need their regular chocolate treat.

Happily though, better-for-you products and chocolate bars are not mutually exclusive and shoppers will purchase across both categories, depending upon their needs.

As strongly as ‘better for you’ sales have grown, they are still only worth a fraction of confectionery sales and so it would certainly be a big mistake for convenience to take its eye off the chocolate bar ball. C&I Convenience &Impulse Retailing would like to thank Mondelez International, Nestlé, Robern Menz, and the Australasian Association of Convenience Stores (AACS) for supplying information for this article..

PIES & PASTRIES

PERFECT PASTRIES

Despite the growing popularity of gourmet and vegan pastries, the humble meat pie and sauce remains king

I

f you were after a 'servo pastry' 10 years ago, chances are you would have had just two choices: a meat pie or a sausage roll. Not so in 2020. The pies on offer in convenience stores today are not dissimilar to gourmet, artisan pies. Gone are the days of stale pastries sitting neglected in pie warmers. Instead, they’re likely to have been baked fresh in store, be vegan friendly or feature premium ingredients. And deliver consumers bang-for-buck on flavour, freshness, taste and innovative flavours.

The ubiquitously Australian snack, whose British origins are often conveniently forgotten, is now also reflecting our diversity, with majors such as Garlo’s making pies that are Kosher and Halal certified.

And proving we can’t get enough of the meat and pie taste combination, Lays recently released pie and sauce flavoured 28 April/May 2020 | C&I | www.c-store.com.au

chips, and Arnott’s meat pie flavoured biscuits for their ‘Aussie legends’ range.

But while every dietary requirement is catered for, as C&I found, the humble, hand-held meat and pastry pie is still the king of (ready-made) pastries.

Brand manager for ‘Australia’s oldest bakery’ Balfours, James Askham-Levy, agreed, saying their biggest sellers were the square and footy pies and the giant sausage roll.

“The square meat pie is over 60 years old and continues to be our number one seller. We continue to improve the product with regards to its lamination and fill and we are always looking to build on its success by making it closer to what its originators had in mind for the archetypal South Australian savoury flavour combination,” Mr Askham-Levy said.

PIES & PASTRIES Health is a big focus for the company, who sell a Better Bite range which carries a 3.5 Health Star rating.

Balfours are also taking the trend towards veganism seriously, and have been working hard at product innovation to capture those looking to avoid animal products for dietary and ethical reasons, as well as consumers looking to cut back on their meat consumption or seeking plant-based meals for their perceived ‘better-for-you’ quality.

“Innovation is within our DNA and to be the first mass baked goods manufacturer to deliver these to the retail and independent channel has returned some wonderful upside for both our sales volumes and values, as well as our brand PR,” he said.

“We are in the process of transforming Balfours into a contemporary baked goods manufacturer and our focus on quality, service, innovation and our esteemed history and heritage will continue to play a forward role in helping us unlock customer and consumer expectations.”

Pie giant Four’N Twenty also recently released a plant-based, meat free pie in February to a mixed reaction. Traditionalists cried foul at the innovative product, claiming it was an insult to the category. However, many welcomed the move, saying it reflected the wider trend towards reducing meat consumption. And despite any undue criticism, it was given the ultimate mainstream nod in being sold at the sporting holy-ground of the MCG. It's a considerable market. Research by Roy Morgan estimates the number of Australians who are following a completely or mostly vegetarian diet is as high as 2.5 million. Many of these consumers are described by the market research company as 'Metrotechs' - that is, highly educated and socially aware. As well as 'Aspirationals', those who are ambitious, young and culturally diverse. Far from the stereotypical pie consumer of a tradesman or student and presenting a diversified market opportunity for companies.

The Outback Pie Co are also embracing the vegan trend. The company manufactures more than 6,000 pies per hour, supply convenience stores, schools and contract customers including United Petroleum/Pie Face with products manufactured to their recipes and formats.

However, they are taking a different take for their vegan products, choosing to champion vegetables rather than focus on plant-based meat alternatives, said managing director Milo Gaffney.

“We have focussed more on vegetable-based flavours such as roast vegetable and lentil coconut curry and creamy broccoli and cauliflower, rather than purely developing products based on meat replacement proteins,” Mr Gaffney said.

April/May 2020 | C&I | www.c-store.com.au 29

PIES & PASTRIES Their typical consumer, Ms Bower added, is on-the-go and looking for a trusted, fast and easy to eat, substantial option.

They generally purchase around meal-times and add a beverage to their purchase and gravitate towards traditional flavours.

“Fuel and convenience stores are a key channel for Mrs Mac’s with the ever-growing trend of on the go convenience for increasingly busy lifestyles. Many convenience stores are embracing the bakery-style fresh offer with pies and sausage rolls a key offer in the space,” Ms Bower said.

“In addition to the growth in snacking size, there is also a strong shift towards premium offers. These premium offers include new and more adventurous flavours to accommodate growing international palates and dietary needs.”

And proving it’s not just a division between meat or plant-based fillings, the fight between the meat pie or sausage roll continues to be close race.

“Whether veganism takes a solid hold with a large move over to plant-based proteins replacing meat for pies remains to be seen.

What is for certain however, is that consumers are on a trajectory towards healthy, better flavoured products across the board, which requires innovation in both flavours and format.”

Health has become a growing consideration for Outback’s consumers, which the company has been addressing by using free range chicken, hormone free beef and avoiding genetically modified products. Another trend Mr Gaffney expects to see more of is retailers baking pies fresh in store, saying consumers have raised the bar on their expectations for ready-made pastries.

“I think a long-term trend has been for consumers to look for better quality products. They expect a standard pie these days to be what one might have referred to a decade ago as a gourmet pie. Our experience is that consumers want both new style flavours and more sophisticated flavour profiles from their traditional favourites,” he said.

AT A GLANCE • Vegan, vegetarian and plant based pastries are becoming increasingly popular.

• The trend to better-foryou products has also reached the category, with companies focussing on this in their NPDs.

Despite these trends taking a considerable slice of the company’s innovation and NPD focus, Mr Gaffney said their traditional products were consistently their best sellers.

“Steak, steak bacon and cheese, and pepper steak pies still generally outsell other flavours. The other big seller from within this category is of course the sausage roll, which accounts for approximately 30-35% of all hot pastry sales amongst our customers,” he said.

• Another trend we will see more of is pies baked fresh in store, rather than reheated in a pie-warmer.

It’s the same for Mrs Mac’s. Of the more than 100 million pies and pastries the company produce annually, their best sellers remain the famous beef pie and giant sausage roll.

• The classic meat pie and sauce combination remains the biggest seller for many companies

Asked what they put the pastry’s enduring success down to, they said convenience was a driving factor.

• However, consumers are seeking gourmet products and sophisticated flavours and expect multiple options to be on offer.

“Apart from being a traditional Aussie classic, the pie can be enjoyed across so many different occasions. It is the ultimate on the go feed. However, is equally as popular plated up as meal with vegetables and gravy, and of course the party range are always a winner when entertaining,” partnership and communications manager at Mrs Mac’s Nikki Bower said.

30 April/May 2020 | C&I | www.c-store.com.au

A Facebook pole by the Cheat Meals Melbourne page asking whether their more than 57,000 followers preferred a meat pie or a sausage roll, results were fairly-evenly split. Of the 2,800 people who voted, the sausage roll nabbed the top spot with 50.2 per cent of the vote to the meat pie at 49.8 per cent. C&I Convenience &Impulse Retailing would like to thank Balfours, The Outback Pie Co, Mrs Mac's for supplying information for this article.

PRODUCT NEWS

Uncle Tobys Oats New Nutty Flavours

Time-poor Aussies looking for a healthy start to their morning on-the-go need look no further. Uncle Tobys has just introduced two brand new delicious varieties as part of its portable Breakfast Bakes range – Roasted Cashew & Vanilla Flavour and Classic Peanut Butter.

Uncle Tobys ambassador and nutritionist Kathleen Alleaume said: “Our busy lives don’t always allow us the time to sit down to enjoy our breakfast, but if we don’t, we often find ourselves grazing on unhealthy snacks throughout the day”.

“A satisfying bite that fits into the palm of your hand, Uncle Tobys Oats Breakfast Bakes have the same amount of oats as a bowl of porridge.

Breakfast Bakes are an excellent source of whole grains and are Low GI which means they help provide longer lasting energy”.

Research from 2019 revealed consuming whole grains at breakfast ensures that you crave less added and natural sugars, refined grains, and unhealthy snacks throughout the day.

“The Uncle Tobys Oats Breakfast Bake is perfect for busy families on the run, as it is a source of protein and is high in fibre to support a healthy digestive system”.

Each Uncle Tobys Oats Breakfast Bake has a Health Star Rating of 4 or 4.5 and is made from wholesome ingredients with no artificial colours or flavours. And can also be heated up in the microwave to be enjoyed as a warm option on-the-go.

Uncle Tobys Oats Breakfast Bakes are available from Coles, Woolworths and independent supermarkets as 65g x 4-packs (260g) in five varieties, with a RRP of $6.00. Flavours include Classic Peanut Butter, Roasted Cashew and Vanilla, Honey and Almond, Berry Harvest and Apple and Cinnamon.

Dare Sparkling Cold Brew Coffee: it is worth bottling!

Dare has done it again! The innovative drinks leader has introduced a new Sparkling Cold Brew Coffee that is not only better for you, but is also a truly refreshing pick me up!

On sale in Queensland, Dare Sparkling Cold Brew Coffee will tempt fans with the choice of three revitalising flavours: original, with vanilla and with citrus, all 330ml.

It is made with 100% Colombian cold brew coffee and in a clever twist, Dare Sparkling Cold Brew Coffee is made with purified sparkling water. It delivers a smooth, sweet, refreshing and naturally delicious pick me up and with no artificial sweeteners, it is a great better-for-you option with no sugar and just seven calories per bottle!

Darryn Wallace, marketing and innovation director at Lion Dairy & Drinks, said as one of Australia’s most popular coffee brands, Dare was trusted by fans to deliver innovative products.

“They want choice and with its new Sparkling Cold Brew Coffee, Dare is responding to what fans expect. This is providing a lighter, refreshing beverage, without the sugar and with the functional benefit of a pick me up from the cold brew coffee.

“Dare Sparkling Cold Brew Coffee is sure to appeal to fans looking for something different for their mid-morning or afternoon coffee fix.”

And the surprises keep coming. Bottled with a screw cap, Dare Sparkling Cold Brew Coffee can be kept chilled for up to three months.

“We believe in providing consumers with choice, and this new product offering is a great way to offer more options to suit their needs at the time of purchase,” Mr Wallace said.

Fans will be able to find it in their local QLD ndependent grocery and select convenience stores in the chilled sparkling drinks fridge!

To find out more about Dare Sparkling Cold Brew Coffee visit www.dareicedcoffee.com.au

32 April/May 2020 | C&I | www.c-store.com.au

PRODUCT NEWS

Australia’s iconic MILO launches in a can Australia’s iconic brand MILO has launched the new way to drink MILO with the nationwide launch of MILO 240ml can into convenience stores.

It’s made with the goodness of malt and cocoa for the delicious taste and nourishing energy of MILO, but is now ready to drink cold from the fridge, in a convenient on-the-go format.

With a unique combination of nutrients, MILO has: • Low GI* to provide sustained energy to keep you going for longer^ • 7 vitamins and minerals for a nutritional boost • Is a source of Protein (8g) to build and repair muscles^ • A good source of calcium for strong bones and teeth^

With high brand awareness and loyalty, MILO is uniquely positioned to launch into the dairy chiller and attract new shoppers, particularly teenagers and consumers looking for a more nourishing milk drink.

Nestlé Head of Convenience, Laura Ronan said: “MILO is a loved Australian brand with a strong heritage in Australia. We are confident the product delivers the delicious taste of MILO and are excited to see shoppers’ reactions to now being able to drink MILO out of the home.”

MILO original can 240ml (RRP $3.50) will be available from April 14th in convenience stores, so shoppers can now enjoy the great taste of MILO wherever they are!

* Low GI (39). The GI is a ranking of carbohydrates according to their effect on blood glucose levels.

^ When MILO is consumed as part of a healthy diet containing a variety of foods

April/May 2020 | C&I | www.c-store.com.au 33

on shelf from

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delivering flavour leadership that kills hungrythirsty dead!

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OAK CHOKITO AND OAK JAFFAS WERE THE # 1 AND # 2 RAINBOW LAUNCHES OF 2019** * Aztec Scan Value Sales National Grocery & Convenience Combined MAT & QTR to 19/01/2020. ** Aztec Scan Value Sales National Grocery & Convenience Combined 12 weeks post launch if launched 2019.

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71445 71833

9310036071440 9310036071839

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Product name Oak gold limited edition flavoured milk

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500mL

64888

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Lactalis Australia Pty Ltd, 35 Boundary Street, South Brisbane QLD 4101 Phone: 1800 000 257 Fax: 1800 335 188 Email: sales@au.lactalis.com

PRODUCT NEWS

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Zinc is known to help your cells fight infection. Zinc is not present in any other Soothers® product, however each Soothers® Immune+ lozenge contains 2.1mg of Zinc (from Zinc Ascorbate).

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Available in a delicious orange flavour, Soothers® Immune+ also contain eucalyptus oil and menthol to soothe a dry, sore throat and contains no artificial colours or flavours.

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Three new Handmade Co’s Hot Subs Consumers are loving the new pie warmer friendly Hot Sub product that has hit the convenience market!

These products were created with the convenience consumer at top of mind and are great for consumers on the go.

They cater for every meal of the day and are displayed in the pie warmer for up to four hours, alongside pies and sausage rolls.

This range is available in three delicious flavours: ham, cheese and tomato, smokey BBQ chicken and bacon and all-day breakfast.

They make for the perfect snack on the run or a filling and tasty mealtime treat.

Doritos introduces Flavour Shots Introducing new Doritos Flavour Shots – intensely-flavoured, bite-sized snacks that excite your taste buds and wake up your senses. The range comes in a ready-to-go format so you can conveniently get your iconic Doritos flavour boost and keep going with your day.

Doritos brand manager Eric Burke said “Consumers are constantly looking for a fun new snack that they can enjoy on the go, we’re delighted to introduce our new Doritos Flavour Shots range to satisfy this need”.

The new range is available in three bold flavours: Doritos Cheese Supreme Flavoured Mix (35g); Doritos Mexicana Flavoured Corn Crunch (25g) and Doritos Flamin’ Hot Flavoured Nuts (45g).

The launch will be supported instore with off location and countertop displays, a social and digital campaign along with out of home advertising positioned within proximity to store.

The range is for sale in petrol and convenience stores as well as select independent supermarkets nationwide now. RRP. $2.00.

36 April/May 2020 | C&I | www.c-store.com.au

PRODUCT NEWS

Revolutionary Orange Juice Remedy’s new live cultured sodas Remedy Drinks has its sights firmly set on shaking fizzy drinks up for good with a new range of handcrafted, live cultured sodas based on traditional recipes and made with real ingredients making it easier and tastier to make the switch from sugary soft drinks.

The range features carefully sourced, all natural, organic ingredients and includes; Oranja - a zingy, sunny and bright live cultured orange soda made with organic Valencia oranges; Lemonade - a fresh take on a traditional lemonade made with real lemons; Cola – live cultured fresh pressed ginger juice, Kola nut and vanilla combine to create a smooth, aromatic cola with a bit of bite; Lemon, Lime & Bitter – fresh as flavour and oh-so-aromatic with real lemons, limes and botanicals; Ginger Beer – big bang tang with real ginger juice for fiery, full flavours and warmth.

Remedy Sodas are now available in all major supermarkets, petrol and convenience outlets, café and health stores as well as online at remedydrinks. com. RRP is $4.50 for a 330ml RRP or $10.00 for a 4 pack of 250ml cans.

Known for unique capability and focus on innovation, the Food Revolution Group has wasted no time in utilising the ‘Original’ brand since it became active in the market in February. Their focus on ‘first to market’ subcategories and those that have not seen innovation for long periods has seen the portfolio develop a distinct differentiation in the market, and is breathing life back into the chilled beverages space.

At the forefront of Original Juice Co’s innovation is a 50% less sugar orange option, which is looking to change consumer perceptions around existing high sugar orange juice. And to bring consumers back into the category with a better for you option.

Other first to market innovations within the Original Juice Co portfolio is the Australian Natives inspired ‘Bush Tucker’ range. The Davidson Plum and Ribery and Cinnamon Myrtle and Desert Lime flavours have proven to be extremely popular since their launch and further NPDs are in the pipeline for the popular niche market.

As well as new ranges including Original Pressed, Low Calorie Quenchers and fruit and vegetable ranges. All are now readily available.

TRADE SHOW SUPPORTING OUR COMMUNITIES, SUPPLYING & REPLENISHING STORES 5 DAYS A WEEK The Distributors are Australia’s leading national wholesaler. We specialise in beverages, confectionery, snacks, grocery and customer service and operate 35 locally owned warehouses nationally.

What’s more, with over 200 suppliers, we ensure you are provided with the best quality products with competitive pricing.

Recognised and awarded for the highest level of service, we are unmatched in the industry. We work with you to select the right product range to grow your business.

CONTACT US TODAY! 1800 989 022 www.the-distributors.com.au

Due to the growing concerns of spreading COVID-19 and the Governments ban on gatherings of more than 100 people, we have decided to postpone our Retailer Trade Show for 2020 until further notice. We apologise for any inconvenience this may cause. Again, our event is NOT cancelled, only postponed until later in the year.

PRODUCT NEWS

Sanitarium Launches New UP&GO No Added Sugar Sanitarium Health Food Company has launched UP&GO™ No Added Sugar, its most significant product innovation in the liquid breakfast category since debuting UP&GO two decades ago.

UP&GO No Added Sugar has all the goodness of original UP&GO, with no added sugar and up to 30 per cent less calories.

No Added Sugar Choc Ice and Vanilla Ice 250mL packs is available nationally now, following a release to coincide with the back-to-school period; traditionally one of the biggest sales weeks for the breakfast category.

Sanitarium Health Food Company Head of Marketing Ms Jessica Manihera said UP&GO No Added Sugar was created to keep up with changing tastes and preferences.

“Our dietitians and food scientists have worked hard to create a product that gives consumers the no added sugar start to the day they have been

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asking for, while delivering the same convenient nutrition as original UP&GO,” said Ms Manihera.

“Alongside natural sugars, which come mainly from the skim milk powder, plant-based sweeteners help give UP&GO No Added Sugar its great taste without the added calories.

“We’re confident UP&GO No Added Sugar will reignite category growth by appealing to new customers who are seeking a nutritious brekkie on-the-run or an energy top up at any time of day without the added sugar.”

UP&GO No Added Sugar has a five-star Health Star Rating. It is low GI (GI value 44), provides protein and fibre, plus 10 essential vitamins and minerals. It’s also low in fat and sodium.

The launch of UP&GO No Added Sugar will be supported by an extensive marketing campaign including television, social media, online and retail advertising as well as sampling and point of sale.

UP&GO No Added Sugar Choc Ice and Vanilla Ice 250mLs will be available in supermarkets nationally and comes in a range of three, six or 12 packs. A single 350ml pack will soon be available through convenience channels and petrol stations. The launch of UP&GO No Added Sugar will see Sanitarium replace UP&GO Reduced Sugar.

UP&GO was a world first when launched

by Sanitarium Health Food Company in 1997.

It was created to address the growing trend of breakfast skipping and to provide a quick and easy way to gain a variety of the essential nutrients, fibre and protein a traditional cereal breakfast would provide.

Within two decades, UP&GO has gone from an emerging new player to the biggest brand in the breakfast cereal category, with one in five households buying the product.

PRODUCT NEWS

Keeping it clean during lockdown

With supermarket shelves being plundered nightly, trying to keep yourself germ-free is becoming an increasingly hard task. Visiting three or four stores to find what you need is commonplace and even then you are not guaranteed of success.

So it was good news to learn that Olympian Products & Distribution, which was established to share the best of Greek FMCG with Australian consumers, recently expanded its growing portfolio to include a personal care and hygiene category.

Maintaining their mission of selling only the best, they are now distributing the best-selling hygienic wipes in the Greek market, Wet Hankies.

These antibacterial hand wipes eliminate bacteria without irritating the skin and are clinically proven to be effective against Influenza virus H1N1.

Available in both original and three lightly scented varieties, Wet Hankies have achieved 63% market share in their homeland.

Other products in the Wet Hankies range include cleansing wipes for sensitive skin and mild kids’ antiseptic wipes with glycerine for young skin.

Another new germ-fighting hero in the Olympian family is So Clean hand sanitiser, which kills 99.9% of bacteria. Lightly scented with musk, So Clean comes in a convenient 80ml bottle.

In these unprecedented times it makes sense to keep a powerful ally against bacteria on hand and these preventative personal care items easily fit in a handbag or computer satchel. And will provide some extra reassurance and peace of mind as you access essential services.

Due to the very heavy demand current stocks are committed but supply is ongoing. To place a back order for delivery in 4-6 weeks time or to request more information, email sales@olympianproducts.com or call 1800 413 711.

ROBERN MENZ Easter Treats

South Australian chocolatier Robern Menz has announced brand-new products for Aussies to enjoy this Easter. The Menz FruChoc and Violet Crumble eggs will be available for a limited time, while the new Violet Crumble Bunny is set to be a permanent fixture and is available nationwide.

For the first time, a Menz FruChoc Easter egg has been released. The 110g egg is made with milk chocolate and features delicious pieces of the iconic peach and apricot centres within the shell.

Since the news broke on Facebook, the internet has gone wild with thousands of people eager to get their hands on the new addition! “This is a MUST for Easter” commented one eager fan, “This is definitely going to be my one egg Easter gift to myself this year” said another, while one couldn’t wait for Easter to arrive “I bought one and ate it already! Can I say it’s even better than usual FruChocs?!?”

Robern Menz has also teamed up again with local Kytons Bakery, which has created the FruChocs Hot Cross Bun. This partnership began as a fun radio stunt eight years ago and is now an annual favourite – an indulgent twist on the traditional Easter treat, available in an eight pack at Foodland supermarkets, selected gourmet fruit and vegies stores and Blackwood Health.

Violet Crumble fans can also get their hands on a debut treat – the Violet Crumble Easter Egg (110g), this delicious new Easter offering is made of milk chocolate with the iconic ‘shattering’ honeycomb pieces throughout.

Both eggs are currently only available in South Australia (RRP $3.95) until stocks run out in Romeo’s, Drakes Supermarkets, Foodland SA, Cheap as Chips, National Variety and the three FruChocs shops – in Glynde, McLaren Vale and Hahndorf.

Fans of the quintessentially Australian chocolate bar outside of the state can also enjoy a new treat which has been released ahead of Easter but will be on shelves beyond April – the Violet Crumble Bunny. This 30g snack features the winning combination of shattering pieces of honeycomb in milk chocolate. It is available in Coles and Caltex nationally, for $1.50.

40 April/May 2020 | C&I | www.c-store.com.au

CURRENT STOCKS ARE COMMITTED BUT SUPPLY IS ONGOING. YOU CAN BACK ORDER BY CALLING NOW. DELIVERY 6 WEEKS *Wet Hankies wipes are proven effective against ‘flu virus H1N1

For more information on how to order contact Olympian Products & Distribution on 1800 413 711 or admin@olympianproducts.com

INDUSTRY NEWS

ISM 2020 drew visitors from 148 countries to taste the latest in confectionery

ISM FINDS THE INDUSTRY’S SWEET SPOT ISM, the world’s largest trade fair for sweets and snacks, held in Cologne, Germany, lived up to its billing at the 2020 event, the 50th edition of the show. Simon King reports

D

escribed by organisers Koelnmesse as the most important hub for business and innovations worldwide, ISM 2020 did not disappoint, with 37,000 trade visitors from around the world attending the four-day sweets and snacks fiesta.

Foreign visitors, from 148 countries, accounted for more than 70% of visitors, while 87.5% of the 1,774 exhibitors came from abroad.

A large share of the European trade visitors came from Belgium, the Netherlands, the United Kingdom and Italy this year. Further afield, visitors from Israel and Korea recorded strong growth.

The key themes at this year’s ISM underlined the vitality and performance of the industry. This year, exhibitors placed their bets on high quality products with unusual taste components, as well as on natural ingredients and plant or insect-based proteins.

Unsurprisingly, vegan, vegetarian, fat and sugar-reduced, as well as fairly traded products, were also on-trend.

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Euromonitor International’s senior food and drinks analyst Ivan Koric said that the global snacks market is rapidly evolving and continues to grow overall.

“Key trends such as healthy and ethical living, premiumisation and experience are all shaping the market and driving snack category growth forward,” Mr Koric said. “Ingredients, packaging and functionality are increasingly coming to the fore and becoming crucial factors for the success of new product development.”

Looking at confectionery, Mr Koric said that the market in Western Europe is facing several challenges: from high market saturation and declining consumption over consumers’ desire for more nutritious food and healthier lifestyles, to rising raw material costs.

“Nevertheless, snacking and indulgence remains popular and the market is becoming more diversified,” he said. “Growth opportunities in individual snacking categories and Western European markets will therefore occur.

INDUSTRY NEWS “Despite some economic uncertainty, global retail demand for chocolate confectionery is bound to continue to expand steadily over the next few years. The rules are, however changing, with consumers wanting a more premium offering and a healthier profile from their sweet treats.”

The New Product Showcase at ISM featured 100 exhibitors from 33 countries and showcased 178 products.

On the show floor, the emerging and new trends were well supported. Here is a snapshot of a range of companies that attended ISM. Walking around the halls, the booth of German company Katjes stuck out as the perimeter of it was constructed out of wooden pallets, emblazoned with its core message ‘The Future is Plant-Based’.

Following the launch of its Chocjes range in 2019, the vegan chocolate, made from oat milk, Katjes added four new flavours, Cookie Lover, Sea Caramel, Into the Dark and Orange County.

Katjes national accounts controller Phil Hulme said: “Chocjes is a vegan and soy-free choc-innovation.”

“With Chocjes, Katjes has sustainability guaranteed. The chocolate is made not only with an organic oat drink, but also with UTZ-cocoa. The Oat drink is more environmentally friendly and sustainable than any other cow’s milk alternative.

UTZ certification guarantees consumers that products have been sourced from farm to shop shelf in a sustainable manner, including humane working conditions, fair wages, and in respectful environmentally-conscious way.”

Staying with chocolate, business-to-business manufacturer Barry Callebaut, who produces 25% of the global chocolate and cocoa products annually, used ISM as the platform for the launch >>

Byron Bay Cookie Company looks to grow Two Australian businesses headed to Cologne this year to promote their ranges to a global audience.

Melbourne-based Byron Bay Cookie Company was at ISM for the fourth time and the company said it was looking to grow its business in Europe.

Senior commercial manager Mark Perrin said: “We’ve got our own pack and pick warehouse where we store stock in the UK, so we’re looking to branch out to new markets in Europe from there; for the Asian market, products are sent from Australia.”

“We’ve got a European sales manager, Craig Gillon, and I’ll manage the international business from Australia.”

Mr Perrin said that central to the business is its premium offer.

“Our range is a more premium offer than the general everyday supermarket products that are on display here,” he said, “because you get a lot of supermarket buyers looking at a lot of those guys for own label.

“We do a little bit of premium own label and, of course, we’re open to developing that business, but interested retailers need to be the right size. To me, if you want an individually wrapped single cookie, to achieve the economies of scale on packing, you’d need a chain of at least 80 cafés or stores.”

Mr Perrin said that while distributors from Australia still make the trip to ISM, retailers have largely stopped travelling to the show.

“Since times have got more tough in Australia, there’s not as many retailers coming over,” he said. “In reality, Australian retailers should be sending confectionery buyers over to ISM. The offer in Australia is so narrow amongst the corporates – there’s not the wide range of European chocolate that they could have.”

While Byron Bay Cookie Company has strong business with the supermarket channel in Australia, Mr Perrin said he was keen to build business in the convenience sector, where it already supplies 7-Eleven and Coles Express.

Mr Perrin said that the Byron Bay Cookie Company is making sustainability a big focus, although he conceded that it’s been slow to take-off in Australia.

“Sustainability is going to be a major factor, but it’s also Generation Z that are caring about that kind of stuff, while your everyday customers are more concerned about price.”

Looking at packaging, Mr Perrin said that the Byron Bay Cookie Company is looking at biodegradable packaging, while all card packaging is FSA-certified.

“By 2022, we’re going to be fully sustainable on everything,” Mr Perrin said.

Global retail demand for chocolate confectionery is bound to continue to expand steadily over the next few years. The rules are, however changing, with consumers wanting a more premium offering and a healthier profile from their sweet treats.”

The Crunchy Rollers stand sell organic products

The convention was held in Cologne, Germany

- Ivan Koric, Euromonitor International

April/May 2020 | C&I | www.c-store.com.au 43

INDUSTRY NEWS

Ampack pushes display units at ProSweets Melbourne-based packaging business Ampack exhibited its packaging solutions at ProSweets, which ran alongside ISM. Mike Hetrel, a director of Ampack, said the business is based in Melbourne, and its manufacturing partner is in Guangzhou, China.

“We’ve been coming to ProSweets for five years,” he said, “but the secret to any good business on the planet is good networking. So far this year, we’ve picked up a large company from Hungary.

“Our focus at the moment is merchandising display units and we know there is growth in this area for the future. According to our research, merchandising display units increase sales substantially.”

There is a good reason for eating insects, such as the ecological aspect, and there is a health benefit with the protein, vitamins, minerals and saturated fatty acids.”

Visitors check out Katjes fruit gums and liquorice

of its 100% dairy-free ‘M–ilk Chocolate’, part of its Plant Craft indulgence range.

Barry Callebaut’s commercial director Deborah Barnfield said the new chocolate satisfies the growing demand for plant-based indulgence, particularly among millennials and centennials.

“Millennials and centennials earnestly want to live a happy, healthy life, in symbiosis with the world around them,” she said.

“They want food and drinks that are tasty and good for them and also good for the planet and its people.

“The launch comes at a time when sustainability-conscious consumers, especially millennials and centennials, are increasingly adopting a ‘flexitarian’ or ‘freegan’ lifestyle – navigating seamlessly between plant-based products one day and animal products the next, or taking part in milestones like ‘Veganuary’ (January) as a month of an exclusively vegan diet – to reduce their carbon footprint.”

In the UK alone, a 2019 YouGov study found that while only 1% of consumers classify as vegan, 14% of the population have adopted a plant-based diet one or more days a week.

Montrose Chocolate Ventures, a UK-based company, which owns the Danny’s Chocolates, Benefit Chocolate and Cox & Co brands, used its booth at ISM to promote its new fully recyclable packaging.

John Panchaud, Montrose Chocolate Venture’s sales manager, said the company have launched their first chocolate egg under the premium Cox & Co brand.

- Melchior Füglistaller, Essento

He said: “We wanted to launch it with zero impact on the environment, so we chose to lose the acetate window from the box, which is common among other brands in the marketplace.

The card is fully recyclable, and we made sure that we only use organic ink on the card, and we went through several trials.”

German confectionery manufacturer Cavendish & Harvey also launched a new campaign at ISM, entitled ‘Love Taste, Recycle Waste’ which focuses on the 99% recyclability of the packaging.

The Zaharni Zavodi team: Temenuga Decheva, Borislav Angelov and Yana Eneva

Cavendish & Harvey’s sales director Sören Hehl said: “We are known worldwide for our golden tins and jars; an independent German institute has said that 99% of the metal and glass packaging can be returned to the packaging cycle. With the >>

The eye-catching Johny Bee stand

DinoRex's gummy dinosaurs were popular

44 April/May 2020 | C&I | www.c-store.com.au

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INDUSTRY NEWS The Poppies stand

The Rattlerz stand

A chocolate demonstration in the convention's Sweet Kitchen

There was also a start-up speed dating event

One of the many tempting sweets on offer

Visitors could sample many sweet treats

Millennials and centennials are increasingly adopting a 'flexitarian' or 'freegan' lifestyle, navigating seamlessly between plant and animal based products.”

- Deborah Barnfield, Barry Callebaut

new campaign, we want to highlight the advantages of our packaging, which we have been using for many years.”

In March 2019, start-up chewing gum brand Chewsy was founded and the four owners attended ISM for the first time.

Sunitt Halai, one of the co-founders, said that Chewsy ticks a number of these boxes.

“Chewsy is a plant-based, plastic-free chewing gum, with natural ingredients that are sugar-free, aspartame-free, glutenfree and vegan; we use a natural plastic-free based, called chicle, which is gained from a tree, so is totally degradable and environmentally-friendly.”

Mr Halai said that in less than a year, the business has customers in 27 countries, including key markets in the UK, Scandinavia, Spain and the Czech Republic.

Staying in the Czech Republic, Euphoria Trade was looking to attract distributors for its Euphoria-branded range that includes cannabis food, absinths, cannabis vodkas, and beverages.

Chef Bobo’s chief commercial officer Steve Beckham said the company’s Crunchy Rollers are 100% plant-based, made with brown puff organic rice, are available in eight flavours and have just 100 calories per pack.

The company has wide distribution in the US, with its products available in Wal-Mart, Costco and Kroger and its appearance at ISM was about bringing its range to Europe.

“We’ve spoken to representatives from Australia whilst at ISM,” Mr Beckham said.

“Globally, the impact of large food companies has caused our food supply chain to get so cluttered with things that aren’t good for you. This is a very simple, clean snack and it’s easy as each variant has no more than six ingredients in it – and people trust it.”

Chef Bobo’s sales director Kesslee Gumerman added: “We have plans later this year for some trade missions, with other US companies that have the same passion as we do in our products.

A company spokesman said: “Our philosophy is simple: to offer the best products with the best design for the best price at our best customer service and to be the best on the market.”

“There are groups in the US that are really looking to provide the globe with clean products – there’s a fast-growing population who are very concerned about what they’re putting in their body for the sake of their own health. To have a happy life is being healthy and that directly correlates with what you put in your body.”

US-based company Chef Bobo was promoting its ‘simple snacks, with simple ingredients, to simplify life’.

Another plant-based company at ISM was Oh Lily! Snacks, the brainchild of sisters Dewi and Gov Cortier.

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INDUSTRY NEWS Dewi Cortier said: “During a trip to India, we rediscovered the power of water lily seeds, which are highly regarded in Ayurveda for their nutritional powers.

Essento is a Swiss-based company, founded in 2013, that describes itself as pioneers of edible insects, and its range includes snacks, protein bars and even burgers based on insects and falafel balls.

“Water lily seeds are the new super food. They are a good source of protein, iron, magnesium and amino acids; the flavours of the product vary from sweet to savoury. Oh Lily! Snacks are vegan, natural, gluten-free and sustainably packed.”

Before it could sell any products, it had to change the law in Switzerland, as the country’s food safety laws prevented insectderived products being allowed in the human food chain.

Zaharni Zavodi, the largest food production complex in Bulgaria, was established in 1912 and is the leading producer of sugar, confectionery and ethyl alcohol in the country.

The company’s export director Borislav Angelov said: “Raw Mate are 100% natural raw balls that come in two flavours – plum and almond and cranberries and goji berries – and contain no added sugar, aromas or colourings.”

It doesn’t get much more natural than insect-based products and there were a plethora of companies showing their wares in this area at ISM.

Industry leaders came together to share ideas and network

Essento’s head of sales and marketing Melchior Füglistaller said: “We went to the parliament and had a tasting with the politicians.

We are on a mission; we really want to change something in our food consumption habits. There is a good reason for eating insects, such as the ecological aspect, and there is a health benefit with the protein, vitamins, minerals and saturated fatty acids.”

“Our job is to make really tasty products, because you can’t sell edible insects if they’re not tasty.”

Key trends such as healthy and ethical living, premiumisation and experience are all shaping the market and driving snack category growth forward.”

- Ivan Koric, Euromonitor International

ISM returns to Koelnmesse in Cologne in 2021, from January 31, 2021 to February 3, 2021; ProSweets will return on the same dates. C&I

The event featured live cooking demonstrations

The event was a great chance to get a quick snapshot of the latest confectionery trends

The Adams & Brooks stand April/May 2020 | C&I | www.c-store.com.au 47

INDUSTRY NEWS 18 hole competition winners Ben Brook, Michael Brooks, Deva Dhar, and Anil Nathoo

18 hole competition runners up Crispin Ashton, Regan Smale, and Matt Cope

9 Hole competition winners Ritesh Dave, Craig Eagleton, Spencer Jenkins, and Rhodes Pillman (absent from photo)

HOLE-IN-ONE FOR NZACS ANNUAL GOLF TOURNAMENT

I

t was a hole-in-one for the New Zealand Association of Convenience Stores recent annual golf tournament.

The fundraising event brought together representatives from 28 companies to showcase new products, support the association and to raise funds to send two winners of the annual Peter Jowett scholarship to the National Association of Convenience Store (NCAS) show, held in the USA. More than 60 players tee-ed off for 18 and nine hole games, as well as a special ‘bubbles and bash’ event for 15 players to get a run through from expert coaches before hitting balls off the second tier of the driving range in Takapuna, on Auckland’s north shore.

Winners on the day included Ben Brook, Michael Brooks, Deva Dhar and Anil Nathoo for the 18 hole round. And Ritesh Dave, Craig Eagleton, Spencer Jenkins and Rhodes Pillman for the nine hole.

The longest drive winner went to Anil Nathoo and nearest the pin to Scott Bell.

Hole sponsors for the day included Remedy, Meadow Fresh, Frucor Suntory and Vype. Among the prize sponsors were Caltex, Coca-Cola Amatil, Drinks Collective, Signature Marketing NZ, NZ Vapor, Twin Growing NZ brands, OnGas and Mars Wrigley Confectionery.

The event has been held for more than 20 years. C&I

48 April/May 2020 | C&I | www.c-store.com.au

Longest drive winner Anil Nathoo

Goodman Fielder Prize Hole winner.

Sandra Steinberg of Goodman Fielder presents to Anand Patel

Bubbles and Bash competition winners Michelle Sowman and Geoff Smith

INDUSTRY NEWS

I’m very positive about the future and this allows us continued investment into the network and continue our mission to be a low cost provider to the Independent Stores,” – Lou Jardin

SPAR's managing director, Lou Jardin with the recipient of supplier of the year award Jacobs Douwe Egberts

SPAR’S NIGHT OF NIGHTS LIGHTS UP SUNSHINE COAST

I

t was SPAR Australia’s supplier night of nights on the Sunshine Coast last month, where SPAR’s success was on full display as they celebrated being ‘Better Together’.

The retailer drew a large crowd to the Novotel Sunshine Coast Resort, Lily’s on the Lagoon to join SPAR Australia managing director Lou Jardin, who gave a run-down of positive growth within the business over the last 12 months and the challenges SPAR had overcome to emerge stronger than ever.

As attendees dined, Mr Jardin ran through the retailer’s international theme ‘better together’ and recent developments, including the launch of Australia’s first SUPERSPAR at Molendinar on the Gold Coast.

He also spoke about his passion for collaboration and how he believed this would help SPAR achieve its future goals.

“This is my 10th SPAR Supplier Awards night and I would like to thank all our Supplier Partners who have played an essential role in building a differentiated model that is crucial for the success of SPAR Independent Retailers and we are Better Together,” Mr Jardin said.

“I’m very proud of my team whose innovative approach has enabled the Supplier Partners to deliver on their objectives whilst delivering real value to the SPAR network – big thank you to them.”

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“I’m very positive about the future and this allows us continued investment into the network and continue our mission to be a low cost provider to the Independent Stores.”

Guest of honour, chairman of CJ Lang (SPAR Scotland), Jim Hepburn also shared his insights from his 40 years experience in retail across strategy, business vision and purpose.

Among the winners on the night was Jacobs Douwe Egberts, who took out the Grocery Supplier of the Year and Supplier of the Year awards.

While Fruitlink were awarded Direct Supplier of the Year, Regal Cream took out Perishables Supplier of the Year and Nestlé Purina won Non-Food Supplier of the Year.

Other awards included Promotional Support Supplier of the Year, won by Vesco Foods; SPAR Customer Own Brand Supplier of the Year, won for the second year running by The Greek Yoghurt Company; and Supplier Account Manager of the Year, awarded to Darryl Gordon of Mondelez.

SPAR Australia is one of the fastest growing retail groups in the country, with close to 300 independent retail supermarkets supplied with grocery products, marketing and retail support from SPAR under the SPAR and 5STAR banners across QLD, NSW, ACT, NT and Pacific Island areas. C&I

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INDUSTRY NEWS

TWO OF A KIND We have a mutual respect for each other, we understand the other’s needs and support each other to get the job done.”

- Kate Pedersen, Vodafone

V

odafone National Account Executive – Kate Pedersen, and OTR Category Manager – Mia Visser, have worked together in contrasting roles over the last three years. Kate currently manages the Petrol Channel at Vodafone, working closely with their distribution team at Yes Distribution. Mia previously worked as a Vodafone Account Manager at Yes Distribution in South Australia and is now the Category Manager at OTR responsible for making buying, merchandising and purchasing decisions in the Telecommunications category. OTR has recently expanded its retail footprint outside of South Australia with five new stores in Western Australia and three new stores in regional Victoria.

HOW DO YOU KNOW EACH OTHER? Kate: We started working together three years ago when Mia was working for Yes Distribution in South Australia as an Account Manager and I began working at Vodafone as an Account Executive. We worked closely managing some of the Convenience channels. We hit it off straight away and built a strong relationship. In March 2019, Mia left Yes Distribution to join OTR, but we kept in contact and 6 months later I started managing the Petrol Channel within Vodafone, and here we are again!

MIA, TELL US A BIT ABOUT YOUR BACKGROUND. Mia: I have a very diverse background. I started in retail in the buying office with David Jones as a Merchandiser. I then moved into accounting and finance, taking time off to travel and work overseas while raising a family. My personal interest in health 52 April/May 2020 | C&I | www.c-store.com.au

Mia Visser and Kate Pedersen have become great friends

and wellbeing led to me studying and becoming a qualified yoga instructor as well. I started working as a Sales Representative and Account Manager at Yes Distribution, primarily managing Vodafone and Unlocked products with OTR. An opportunity for a Category Manager role came up, which I jumped at which really suited me as I came from a buying background! The role is very fast paced within OTR, which is a very dynamic business it is constantly changing from day to day.

HOW HAS YOUR RELATIONSHIP CHANGED? Kate: Our relationship has evolved over the years and our change in roles, but we still work really well together. We have a mutual respect for one another, we understand each other’s needs and support each other to get the job done. I think what makes Mia such a great Category Manager is that she has been on the other side of it. She is very passionate about Telco, she knows how a store should look from a merchandising and display perspective.

She spends time in stores, she understands when something needs fixing and gets it resolved quickly. If something’s not right in store, she’s on the phone to me straight away!

Mia: Kate and I have had to navigate a change in relationship.

We have a high level of transparency and trust so I know that if I ask for something from Kate – she will deliver on that – 100%. And Kate knows I am going to honest with her in return. I won’t tell her something today and then change my mind next week. I try and provide her with that transparency so that she can make strategic decisions that she has to make which works for Vodafone. >>

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INDUSTRY NEWS

OTR store designs are renowned in the industry

We have a high level of transparency and trust. I know if I ask something from Kate, she will deliver 100%.”

- Mia Visser, OTR

HOW DO YOU PREFER TO WORK TOGETHER? Kate: We have regular catch-ups – whether I fly down to Adelaide or over the phone. We keep each other updated on what is happening in each other’s businesses, and have regular reviews on our performance to date, future targets and promotions and what we need to do to close the gap. We always bounce ideas off each other to obtain the best outcome for both parties.

Mia: Kate shares her business strategy and I ask her for market insights so that I can apply that to my Category Plans.

It is important that what we do is aligned and so we are very clear on how we move forward together to the next quarter.

Understanding the Vodafone business from my time at Yes Distribution puts me in a unique position – sometimes this can work in Kate’s favour and sometimes it doesn’t!

HOW HAVE YOU RESOLVED CONFLICT OR CHALLENGES? Kate: We have definitely had challenges over the years, but we haven’t experienced much conflict. We are quite similar in that we are both organized and like to get things done, so if an issue arises, we act quickly and fix it. That solves most of our problems!

Mia: There is a level of mutual respect as individuals that we have for each other as we both understand that we have jobs to do for our respective businesses and work towards a joint goal.

There is no doubt that our relationship has changed over the years, but we have both adapted to that shift.

WHAT DIFFERENTIATES OTR FROM OTHER CONVENIENCE RETAILERS? Kate: OTR are leading the market in convenience retailing. Their in-store experience is one of a kind, with an incredibly unique one-stop-shop experience and an innovative layout. The stores are clean and you can see the pride on the faces of the staff in 54 April/May 2020 | C&I | www.c-store.com.au

OTR telco bays are prominently located within the stores to maximise pre-paid sales

store. You want to spend time in store, browsing, which at the end of the day is the end goal – to keep customers in store for longer. It is no surprise that competitors come to South Australia to learn more about OTR stores.

Mia: We have very high standards when it comes to cleanliness.

Why would we put so much effort and work into building a store like this and not look after the basics. We are known for our extensive instore experience and instore layout which is designed to deliver the ultimate customer experience. It’s something we’re known for and OTR has won international design awards in recognition of this.

HOW DOES OTR APPROACH THE TELCO CATEGORY? Kate: OTR is a premium Telco retailer with dedicated merchandising bays and set planograms, which makes it very simple for our Yes Distribution team to execute at store level and allows for efficient store visits. I think OTR lead the market in terms of structure and consistency. The in-store journey is easy to navigate, and customers looking to buy Telco products can easily find what they want. The stores are aligned with planograms, so you get that consistency and customers know you can get SIMS in store. You often find in other channels that the in-store experience for Telco can often be a bit confusing with stands hidden from customer view or SIMS not on display, leaving an inconsistent experience for customers.

Mia: We ensure all point of sale is up to date and we always have stock that is current. This is the expectation from the business and as a Category Manager, I enforce that. I am very particular and I support all of my Telco partners. I like to ensure that everyone is doing the right thing to support the category. We push our Telco partners to get the best deals across the line so that we can pass this onto our customers because they are the ones that support our business. C&I

INDUSTRY NEWS

Vodafone committed to continue keeping customers connected Vodafone has announced support for those working from home. The telco is providing additional data, unlimited standard national calls, and other initiatives to support customers who are self-isolating at home due to COVID-19.

Vodafone chief customer officer, Ana Bordeianu, said the company recognise this is an unprecedented and challenging time and the telco was here to help.

“We want to make sure all Vodafone customers can stay as connected as possible to support their changed circumstances,” Ms Bordeianu said.

As more people are working from, and spending more time at, home, Vodafone are offering all existing Postpaid customers (who are not on an endless data plan) a bonus 5GB of additional data, and existing Prepaid customers a once-off bonus 3GB of additional data with their next recharge.

And until April 30, active Prepaid voice customers can access 10GB of bonus data via an opt-in SMS by texting the word 'BOOST' to 1263.

“We can also assure our customers that our mobile and fixed networks are well-equipped to manage additional traffic during the day, however speeds may vary as usage patterns fluctuate from normal conditions.” Ms Bordeianu added.

To provide further support and ensure customers continue to feel connected, all Vodafone Prepaid and Postpaid customers will receive unlimited standard national calls until the end of April.

Additionally, to ensure customers have access to government health advice during this difficult time, they have also free-rated the federal, state and territory health department websites.

And in recognition of the unprecedented number of people whose financial situation has been negatively impacted by the virus, they have introduced

measures for customers experiencing financial hardship either directly or indirectly as a result of COVID-19.

The telco said their priority was to keep customers connected and they want to reassure customers they would work to find solutions to the unfolding challenges.

Customers seeking to discuss their options on this should call Vodafone on 1300 650 405 between 8am-8pm AEST Monday to Friday.

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INDUSTRY NEWS

Vodafone rolls out first 5G sites

Consumers the big winners in Vodafone merger with TPG Vodafone Hutchison Australia (VHA) will enter a new era and bring substantial benefits to Australian consumers after the ACCC’s decision not to appeal the Federal Court’s ruling on the merger with TPG Telecom.

VHA Chief Executive Officer Iñaki Berroeta welcomed the ACCC’s decision not to appeal and said it cleared the way to take the next steps to finalise the merger.

“We are pleased that the ACCC has decided not to appeal the Court’s decision and that will allow us to quickly progress completion of the merger with TPG. We believe that the merger will allow us to be a stronger player that will bring more choice and value for Australian consumers and businesses,” he said.

Vodafone also recently announced it had switched on its first 5G sites around Parramatta, delivering 5G connectivity to customers for the first time. A phased 5G rollout across Australia’s major capitals will commence in coming months and 5G international roaming will follow.

“We have ambitious 5G rollout plans. The more quickly the merger can proceed, the faster we can deliver better competitive outcomes for Australian consumers and businesses,” Mr Berroeta said.

“Ultimately, consumers and businesses will be the big winners from this merger. After 18 months of uncertainty, we’re excited to now be able to progress our plans.”

“Finally, Australia will see a third, fully-integrated telecommunications company with the scale to compete head-to-head across the whole telecoms market.”

Mr Berroeta said the merger should be completed in mid-2020, subject to the remaining regulatory and shareholder approvals.

“We’ll continue to keep our customers and the market informed of our progress as we embark on this exciting new era,” he said.

56 April/May 2020 | C&I | www.c-store.com.au

Vodafone Hutchison Australia have switched on their first 5G sites in Sydney’s Parramatta, with plans to introduce 5G international roaming in the coming months.

Vodafone chief executive officer Iñaki Berroeta said 2020 is the year of 5G and Vodafone customers will soon be able to use the 5G network both in Australia and in selected international countries.

“This is an exciting occasion for us as a business and for our customers – we have worked tirelessly to put our customers at the heart of our 5G plans and we are proud to switch on our first live sites in Parramatta,” he said.

Vodafone customers with their $5 Roaming product travelling to a few of Australia’s favourite international travel destinations will soon also be able to enjoy 5G while they’re away. The telco is planning to launch initially to five countries – the United Kingdom, Italy, Spain, Germany and Ireland – with more destinations to be added over time.

“In the coming months, we will be leading international roaming into the next generation of mobile technology by combining the great value of our $5 Roaming product with a 5G network experience in five of Australia’s favourite travel destinations,” he said.

Keeping customers front of mind, Vodafone will offer access to 5G across its range of current and existing post-paid and prepaid mobile plans for no additional charge.

Mr Berroeta said the telco believes Australians should be able to enjoy the benefits of 5G when it becomes available to them, and should not worry about paying additional costs to simply access it.

“When 5G arrives to our customers with 5G devices, they will get 5G network access at no extra charge,” he said.

“Throughout 2020 our customers will see us deliver 5G coverage to more areas; with more 5G devices to choose from; while delivering the great value that Vodafone is known for. We have more than 650 5G sites in planning, with thousands more on our roadmap over coming years.”

Vodafone’s 5G services will be progressively rolled out to parts of Sydney, Melbourne, Brisbane, Adelaide, Perth, and Canberra. The first phase of the rollout will be made up of more than 650 sites, which are currently being planned.

They sites are planned to go live progressively from mid-2020. As the roll-out continues, more and more 5G sites will go live each year in these areas.

For more details on Vodafone 5G, visit www.vodafone.com.au/5G.

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OPINION

DARREN PARK CEO United Convenience Buyers

Studies show most people driving under the influence consumed their last drink at a licensed establishment, such as a bar or restaurant, opposed to a store.”

– Darren Park

ALCOHOL IN AUSTRALIAN C-STORES: IT’S TIME A ustralian C-stores are a destination of choice for some 16 million merchandise transactions a week!

These transactions are generated by customers who frequent their favourite location to refresh and refuel, grabbing a quick snack and beverage, maybe purchase a tobacco item, have a flutter on their favourite lotto game or to fill up their vehicle with fuel.

C-store operators in Australia are also investors in their businesses, by making big investments to remain competitive, developing stronger coffee and food programs and constantly improving their offerings across the board, to remain relevant to a changing shopper.

But you know what these shoppers can’t do in an Australian C-store? They can’t purchase packaged alcohol.

I don’t think it’s controversial for me to call BULLSHIT on Australian politicians and say stop the anti-competitive behaviour with alcohol sales. Australia leads the world in so many things, yet we tolerate being behind the world in allowing the sale of alcohol in C-stores.

I hear the voices of the loud minority and I hear the voices of entrenched interests all screaming with fingers crossed behind their backs, about driver safety. Honestly, they have to be loose with the facts to regularly use an excuse like driver safety as the reason for what effectively is channel prohibition.

In the United States, The National Highway Traffic Safety Administration recommends that every state maintain a “place of last drink location” (POLD) database, which reveals where DUI offenders consumed their last drink before driving. Per the National Liquor Law Enforcement Association, studies show that most people driving under the influence consumed their last drink at a

58 April/May 2020 | C&I | www.c-store.com.au

licensed establishment such as a bar or restaurant or at a residence, as opposed to a store where they purchased their beverage.

Therefore, it’s frankly hypocrisy to say that driving to a C-store to purchase your favourite alcoholic beverage is somehow more of a risk than a local bar, club, restaurant or even home.

For many members of our community, C-stores are often the only place local or accessible to buy grocery items, fuel or other products or services. These stores are often a community gathering point, providing essential services for residents, whether it’s food, fuel, financial services such as banking or even mail services such as buying stamps and parcel pick-ups.

Research from the Australasian Association of Convenience Stores shows that enabling convenience stores to sell alcohol could deliver about $400 million to $500 million in annual sales. Annual sales of this size, would place alcohol in the top five of convenience store categories, ironically led by tobacco.

Convenience retailers in Australia really should have the opportunity to choose whether or not to sell beer, wine and other packaged alcohol. We already sell tobacco, lottery and other restricted nature products and categories. As an industry we do this extremely well and our shoppers reward us for our integrity with their repeat support and patronage.

Australian C-store operators are, in my experience, highly responsible retailers in the communities they operate. As said in the title, it’s time.

Until next time, Darren Park C&I

What’s coming up in the June July Edition

Ready for a sweet treat? Find out what’s on offer across confectionery in our June/July issue, where we bring you all the latest in NPDs, consumer trends and indulgent treats.

Caffeine fiends will also love our category feature on coffee, taking an indepth look at what’s on offer across the industry and ask why Australian’s can’t get enough of the liquid gold.

The trend towards fresh food to go is also explored, as we find out what consumers are seeking and what the hottest trends are across meals and sandwiches.

And we ask when we could start to see the cashless store concept take off in Australia, examine how it would work and look at how store attendants fit into the mix.

Don’t miss your copy, available in early June.

PETROL NEWS ROUNDUP DAN ARMES Founder of ServoPro

The petrol station owners that are seeing their businesses grow are ones that are diversifying, finding new opportunities and making their petrol stations a destination.”

– Dan Armes

BUILD A DESTINATION NOT A BUSINESS You can't rely on growing fuel volume to grow your business

L

et’s face it, there’s no new fuel volume out there for any petrol station operators. What I mean by that is we have hit the peak for fuel volume growth in Australia. Our customers are buying less fuel from us and it’s not because they are going elsewhere.

In the short to medium term, vehicles are becoming more fuel-efficient, especially with the popularity of hybrids and other new technology. In the long term, we will see electric and hydrogen take over as an alternative fuel source.

Sure, you can try and take fuel volume from one of your competitors, but they are just going to try to take it back. That is a tough game and leads to reduced profitability for everyone.

This isn’t a bad news story. This is an opportunity! I recently completed a 15-month trip around Australia visiting ServoPro members. The petrol station owners that are seeing their businesses grow are ones that are diversifying, finding new opportunities, and making their petrol stations a destination.

60 April/May 2020 | C&I | www.c-store.com.au

As an industry, we must find new reasons to make customers visit our stores. Fuel is still the number one reason a customer visits a petrol station. Over time this will change, and we need to plan-ahead and be ready for the change that is coming.

The main way our industry is looking to diversify is food and coffee. New petrol stations look more like a large cafe with fuel dispensers out the front. The majors know that they need to change the customer’s perception that a petrol station isn’t a place where you only purchase fuel, but a destination where you can get quality fresh food and coffee, sit down, relax and have a break.

Customers don’t like visiting petrol stations. It’s a grudge purchase. It’s expensive, it’s dirty and it stinks, but they need to have it. We must be thinking of ways to make customers love the experience of visiting our businesses.

Customers need to experience excitement and joy when they visit your store. They need to leave thinking they can’t wait to come back. So how do you make your petrol

PETROL NEWS station a place where people love to visit? You need to take the focus off the grudge purchase (fuel) and make your business a destination they are attracted to and want to visit.

During my travels, I visited many independent petrol stations that have created a theme around their business.

One that stood out was a site that had filled their large store with old motorbikes. Most of these motorbikes were on loan from local customers who loved the idea of others sharing their passion.

The owner told me they get people from across Australia visiting their petrol station because of the motorcycle collection. These people also buy fuel, eat food, buy coffee and purchase convenience items. It’s great for business.

How could you create an attraction at your petrol station to bring in new customers and create that point of difference to your competitor?

Social media can be a great opportunity for promoting your petrol station as a destination. One of our members is absolutely nailing Facebook with over 50,000 followers, sharing daily updates on new products, community events, staff profiles and competitions. And the owner regularly engages with customers via social media and people visit the site because they are loyal fans of the petrol station.

Another great way to make your business a destination is by hosting events. Many business owners who open a new petrol station or redevelop their site have a ‘grand opening’ to celebrate the milestone. What about hosting regular events to attract new customers and to showcase your great shop offer?

Look at what Bunnings have done with the humble sausage sizzle. They have customers visit their stores specifically because they are hungry and know they can get a cheap sausage sandwich on a Saturday morning.

And while they're there, they also check out the store.

If hosting an event on your own is too scary, get together with other businesses in your area, town or suburb and create an event that will bring in new customers to the area. This way the effort involved in organising the event can be spread over a few businesses.

To make your business a destination, you need to do something that’s different to what everyone else is doing.

You need to stand out. Offer driveway service to your customers for an hour a day.

Think about what other products and services you can you offer your customers to diversify the business? Is there an opportunity to become your local post office? Could you become the local newsagent? In rural areas, animal feed and rural supplies may be an opportunity. Think outside the square of what a ‘normal’ petrol station should look like.

The best way to find out what your customers want is to ask them. Train your staff to ask customers what products and services they would like to see in your store. It is all trial and error. Try new things to see what works.

Petrol Station owners need to be on the cutting edge of new trends. What are customers going to need in the future? What is going to be the next big thing like coffee?

Looking ahead, what trend can you capitalise on?

If you would like to discuss how you can turn your petrol station into a destination or to talk about ways you can diversify your business don’t hesitate to get in touch. C&I

To make your business a destination, you need to do something that's different to what everyone else is doing. You need to stand out..”

– Dan Armes

April/May 2020 | C&I | www.c-store.com.au 61

PETROL NEWS

Convenience chain OTR have celebrated the opening of their third Victorian store OTR recently celebrated the opening of another regional store, in Hosham, Victoria. The store will bring 24/7 trading and well known brands to the regional Wimmera region, located between Melbourne and Adelaide.

The multi-million dollar development includes barista made C Coffee, OhJ! juice, Moe’s New York style hot dogs, as well as essential grocery items.

It will also have Advantage fuel and a HappyWash automated bay car wash, and CHILL and EAT brands’ range of ready-to-go sandwiches, salads, pastries and sweets.

OTR general manager Darryl Cotter said they were excited to be able to bring their offerings to the town.

“We are far more than just a petrol station. At OTR, we aim to give customers the very best in convenience retailing with our award-winning fuel and food offers. If you need flowers for a loved one, a quick snack after work, a coffee in the morning or some supermarket necessities any time of the day or night; OTR has you covered,” he said.

“We also know the local Horsham community would be excited to have the famous original-glazed Krispy Kreme doughnuts in this store, however Peregrine and OTR only have the license for Krispy Kreme in SA and NT. So, while we would love to bring Krispy Kreme to OTR’s interstate stores, at this stage it is not possible”.

Horsham furthers OTR’s expansion into regional areas, having refurbished or built 10 OTR stores within the last 12 months.

It marks the chain’s 152nd store and their third in Victoria and will generate 16 local retail jobs.

This Wilson St store will soon be joined by a second Horsham store, located on Dimboola Rd. It had been slated to open this month, however due to unforeseen circumstances arising from COVID-19 restrictions, OTR have been forced to delay the opening until further notice.

The fresh food and coffee offerings at Horsham

62 April/May 2020 | C&I | www.c-store.com.au

The store features OTR's famed sleek design

The OTR Horsham team celebrate the store's grand opening

The store was officially opened last month

Petroleum equipment and services

Action Installation & Services

ELGAS SWAP’n’GO®

Action Installation & Services was formed in 2006 when Michael Mintilakis and Ron van der Meer decided to create an installation and service company that was second to none. Over 50 years of combined fuel industry experience and knowledge has enabled them to build a business which continues to lead change in the downstream petroleum industry.

Action Installation & Services continually strive to achieve the highest standards of environmental and safety performance, through the use of well informed, highly trained people. Action currently employs 40 staff across admin, installation, pump and electronic service.

Action Installation & Services strives to satisfy the requirements and expectations of every client every time in a professional and cost effective manner. Regular reviews ensure the quality of all products and services and business operations; and that all employees have appropriate job skills training; and quality management, contractual obligations and ongoing process improvement is maintained.

Elgas SWAP’n’GO® is the leading BBQ gas exchange program brand in Australia. The program offers your business the opportunity to increase sales and profits with a very well-known and respected brand.

SWAP’n’GO® also provides your customers with fast, safe and easy transactions. Out-of-date bottles are accepted at no extra charge.

You can add to or replace your declining refill sales, and low margins, with a reliable, convenient and secure swap program that has low labour costs for you.

SWAP’n’GO® maintains a record of excellence in safety, with comprehensive staff training in the safe handling of LPG. Elgas SWAP’n’GO® is backed by a national network of refilling plants and branches to ensure that your business receives quality service. SWAP’n’GO® also creates a massive summer stockpile to provide uninterrupted service during the seasonal peak periods.

Contact Elgas today to become a SWAP’n’GO® dealer.

Contact: Michael Mintilakis Phone: 1300 785 425 Email: michael@actioninstall.com.au Web: www.actioninstall.com.au

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Cardtronics

Gallagher Fuel Systems

When you see an ATM in a supermarket, convenience store or Petrol location, there’s a good chance it’s from Cardtronics, a proud supporter of the convenience, café and fuel industries.

Cardtronics understand the needs of a variety of establishments and the commercial environments that retailers in the P&C channel face.

Cardtronics know that you need your ATM up and running without any issues to service your patrons and provide them with safe and easy access to cash.

For your business premises a Cardtronics ATM will mean more customers with cash to spend in store, reduced eftpos fees, 24-hour service and support.

It is a fact that a percentage of the cash withdrawn from a Cardtronics ATM is spent on the premises, which will improve your revenue streams.

At Cardtronics we know from proven experience that an ATM can deliver more sales to your business. If you want to create more foot traffic in your business, an ATM does that.

Cardtronics is Australia’s largest independent ATM provider and part of the global Cardtronics brand. We operate a real 24 hour service, we operate our own technically trained help desk, offering nationwide support with a national network of spare parts warehouses and dedicated in-house technicians.

Gallagher Fuel Systems designer, manufacturer and supplier of quality fuel dispensing systems. The innovative PULSE fuel dispenser range combines advanced electronics, corrosion resistant metal work, the highly accurate Tatsuno meter and a modular design.

All Gallagher PULSE dispensers are internet capable. With the Data Centre application, each dispenser performance can become visible, via any internet enabled device. This powerful tool with its automated configurations and tools can fix issues remotely and reduce site visits. It brings pro-active servicing to the industry and significantly reduces overall servicing costs.

Gallagher Vapour Recovery solutions fully comply with environmental regulations, provide comprehensive compliance reporting and reduce forecourt pollution, creating a healthier working environment and community.

Gallagher’s latest edition to the PULSE range are the 5 product dispensers. The pressure only model offers one of the smallest footprints at only 2100mm. Mixed pressure and suction models are available with integrated LPG as an option.

Phone: 1300 305 600 Email: sales@cardtronics.com.au

Contact: Derek Hjelm, Business Development Manager Australia Phone: 0424 164 814 Email: derek.hjelm@gallagher.com Web: www.gallagher.com April/May 2020 | C&I | www.c-store.com.au 63

SUPPLY-FIND

Flowsell Flowsell, providers of an innovative gravity-based drink merchandising system, say that when it comes to saving staff time, managing stock and increasing sales, “it’s all about gravity”.

Cool rooms with flat shelving, incur a range of ongoing and unnecessary costs.

By comparison, Flowsell’s drink merchandising system, reduces labour costs removing the need to double handle products and continually face up product.

The system also ensures proper FIFO (first in, first out) stock rotation, reducing product wastage and – better still – fridges maintain an attractive, fully stocked appearance as customers buy throughout the day.

The Flowsell full rack drink system is used extensively in all areas that retail drinks from a cool room.

This includes service stations, convenience stores, bottle shops and function centres. Other options available from Flowsell include a specialised Retrofit Bottle Slide Kit. This kit enables a customer to convert an existing flat shelf into a gravity feed system.

This system has been successfully used in convenience stores, bars, sporting clubs, cafes, bakeries, fast food outlets and anywhere that has a fridge with flat shelves.

Flowsell also supplies a gravity feed milk trolley for use in supermarkets with a dedicated cool room.

Free your staff to deal with customers in store and let gravity do the grunt work. Contact Flowsell on www.flowsell.com.au or Ph: 03 9708 2276 to find out how you can start saving today.

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10 Sonia Street, Carrum Downs, VIC 3201 Phone: (03) 9708 2276 Fax: (03) 9708 2279 Hours: Mon - Fri: 9am - 5pm www.flowsell.com.au

Gascorp Pty Ltd – Budget Petrol Strategic Price Management C

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Be informed of what you need to know when you need to know it and make decisions that will improve your bottom line.

Access the latest pricing data Receive alerts Informed Sources provides solutions that will help you achieve your business goals www.informedsources.com

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64 April/May 2020 | C&I | www.c-store.com.au

Budget Petrol, established in 1985 is one of the oldest and largest groups of independent service stations in NSW, with over 60 locations in the Sydney Metropolitan area. Our Retail stores strive to provide our customers with Quality Fuel at Budget Prices.

Our Wholesale arm – Gascorp Pty Ltd offers independent operators a business model which enables them to run their own business without interference, while utilising the backing of a competitive, professional and reliable brand.

We offer competitive Mobil supplied fuel prices, Valvoline Oil, LPG Supply, In Store Programs, ATMs, Banking Partners and Environmental Regulation Support. We also operate our own fuel transport company which allows us to offer the highest levels of service for fuel deliveries and logistics.

We can help independents looking to: • Lease their property to a reputable company • Sell their property freehold • Reimage and brand their site • Change fuel supplier and retain their independent brand

Contact: Diann Melas Phone: (02) 9564 2355 Email: fuels@gascorp.com.au Web: budgetpetrol.com.au

To be listed here, please contact Safa de Valois on 0405 517 115 or email safa@c-store.com.au

SUPPLY-FIND

Shipman King Pty Ltd Shipman King Pty Ltd is an Australian designer, manufacturer and distributor of equipment for the service station forecourt industry.

Under their ESKAY brand, Shipman King’s long history has enabled the company to become a major supplier of this equipment throughout Australia, New Zealand and the Pacific region.

With an extensive product range and ability to service the whole of Australia, Shipman King is truly your one stop shop. Australian owned, Shipman King’s product range includes: •F ill Adaptors and Caps, Dip Cap Assemblies •U pflow Vents, Pressure Vacuum Vents • Dip and Fill Product Markers •V apour Recover Equipment, Stage 1 and 2 • Overfill Prevention Valves complete with aluminium tube ready for retro fitting

• Monitoring Wells and Ground Boxes • Durapipe PLX Polyethylene Piping System • Underpump Containment Sumps and Browning Spill Safe Boxes • Adblue Equipment • Sloan-LED Canopy Lights • Cim-Tek Spin-On Filters • Husky Fuelling Products • Aboveground Tank Equipment

For their complete product range, please visit Shipman King’s website.

Contact: Nigel Howlett Phone: (03) 9459 9900 Email: sales@shipmanking.com.au Web: www.shipmanking.com.au

Other suppliers Abacus Stocktaking Services Pty Ltd Accor Action Installation & Services Pty Ltd Active Eye Advanced Lighting Technologies Australia Inc Aitken Rowe Testing Laboritories PtyLtd Augusta Properties AusSport Pty Ltd Australian Enviro Services B&B Industrial Benchmark Business Sales & Valuations BP Australia Caltex Australia Capricorn Society Ltd Cavvanba Consulting Pty Ltd Coffey Environmental Services Commercial Indemnity Pty Ltd Compac Sales Pty Ltd Conservelec Pty Ltd Douglas Partners Earth Air Water Consulting & Monitoring P/L ECL Group Energy Action Environmental Monitoring Solutions Pty Ltd Envirotank Pty Ltd Envirowest Consulting Pty Ltd EquipCo ETP International Pte Ltd F&M Supplies Fuel Data Solutions Fuelgear Geo-Logix Pty Ltd

Gilbarco Australia HMC Pty Ltd Intertek Testing Services Jeffery & Katauskas Pty Ltd Jon Jen Trading Pty Ltd Leighton O'Brien Pty Ltd Liberty Oil Liquip International Pty Limited Metro Petroleum Mobil Oil Australia MPHP Architects Pty Ltd MTAA Superannuation Fund Pty Limited North Cross Australia Pty Ltd Northern Petroleum Equipment Services Pacific Guage Park Pty Ltd Perich Constructions Pty Ltd Perisale Australia Pty. Ltd. Petroleum Tank Technology Precision Stocktaking Services Puma Energy RCA Australia Pty Ltd SGS Australia Pty Ltd Spill Station Australia Pty Ltd Tank Solutions Pty Ltd Tennco Pty Ltd The Remediation Group Trans Tasman Energy Group Trax Retail Solutions Unigas Pty Ltd United Petroleum Urth Energy Valvoline Wayne Fuelling Systems

SI Retail SI Retail is an Australian owned family business that has been operating since 1974. With extensive technical knowledge, their professional team have developed a range of versatile shop fittings and point of sale solutions to suit a variety of retail industries.

With the petrol and convenience industry in mind, SI Retail has created a range of displays for retailers to showcase their products in the most costeffective and efficient ways. This will assist your business by driving product sales, whilst decreasing operational costs and maintaining a neat and attractive environment to promote a positive shopping experience for your customers.

Whether you require signage, shelving, shelving accessories (such as roller gravity shelves, LED lighting or shelf management), shopping baskets, hooks or data strips, SI Retail have the solutions for you!

Phone: 1300 434 775 Email: info@siretail.com Hours: Mon - Fri (8.30am - 4:30pm) Web: www.siretail.com

Petroleum equipment and services C&I Supply-Find is a detailed listing of suppliers of products for resale, business services, maintenance providers, and manufacturers and suppliers of capital equipment for shop and forecourt. It is included in every issue of C&I Retailing Magazine, six times per year to a circulation of around 22,795 businesses.

The rate for posting in C&I Supply-Find is $2,950 + GST for one full year (six print issues and 12 months on our website). Bookings are a minimum of one year. For a 1/2 page, the rate is $5,900 + GST per year.

For all advertising enquiries with C&I Media, please contact

Safa de Valois Mobile: 0405 517 115 Email: safa@c-store.com.au

April/May 2020 | C&I | www.c-store.com.au 65

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Not for commercial or resale purposes. Must have an active Vodafone Prepaid recharge product to purchase an Add-on. Countries subject to change, see current list at vodafone.com.au/prepaid/plans/international-roaming. Only available for purchase via My Vodafone, SMS or Express Recharge. Add-on inclusions will be used first, once exhausted, usage will be charged from any remaining recharge credit at standard PAYG Roaming rates for that recharge. 1-day ($5 Roaming Add-on), 3-day ($15 Roaming Add-on) or 7-day ($35 Roaming Add-on) expiry after purchase. SIM activation must be completed in Australia. Data is deducted in per KB increments. Included data is for use on handsets only. Charged in per minute increments. Excludes premium, video, special and overseas free phone numbers. All Vodafone services, including the Vodafone data roaming service is subject to overseas network limitations and availability and individual device capabilities. Some Vodafone services may not be available whilst roaming in some countries.

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