Page 1






24 34 08 FACETIME

Georgia Kollaras, Marketing Manager at Kollaras & Co


EzyMart in Melbourne’s CBD


AACS news roundup


Tobacco continues to deliver strong sales and profits


How sugar is shaping convenience store sales


Booming segment bursts out of the gym and into the mainstream


Minimum purchase and spend requirements, can take a real toll on a business’s profitability, so it’s worth looking at why

38 SAFA’S CHOICE 2017 round up

New year, new adventures T

he New Year is well and truly in full swing and we’ve already seen a lot of movement and action within the convenience industry. A common resolution that people make around the beginning of the year is to get healthy and lose weight. Our feature articles on sugar confectionery and protein bars and beverages address the health benefits (or lack thereof) of both, whilst also examining how retailers can capitalise on the yearly health trend. In this issue we also take a look at a C-store in Melbourne who understands the public love of both confectionery and a good coffee, with the store having a strong focus on imported confectionery to entice and delight locals and tourists alike. This story can be found on page 12.

AACS recently announced two of its most anticipated events of the year, their overseas study tour to take place in China and the down under study tour of Sydney. Information regarding these tours as well as the other events that AACS has in store for the year can be found on page 16. We can’t leave 2017 behind without taking a look back at Safa’s favourite new product picks from the year, and we remain consistently excited for all the products yet to be released this year. Reminisce with us on page 38.

Safa de Valois James Wells

Lucy Marrett

Lucy Marrett Editor


All the latest product releases


Brett Barclay, Charles Watson, Darren Park


Pacific Optics partner with Commonwealth Games


Dan Armes, In the news, Scancam

Keith Berg

Ben Curtis

Jeremy Gough


Grinders Coffee launches cold brew for summer

Grinders Coffee is bringing cold brew from behind the counters of boutique cafes and into the mainstream with their new Grinders Cold Brew. Coffee lovers can expect a pure and smooth-tasting Colombian Single Origin with intense notes of rich chocolate and hazelnut. Grinders’ head coffee educator Andy Easthope said: “By using a cold brew method and avoiding exposure to intense heat, cold brew has a much lower bitterness and acidity (than coffee typically prepared via an espresso machine) making it perfect to enjoy cold”. Available in 300ml glass bottles, Grinders Cold Brew contains six 50ml serves per bottle and has a 12 month shelf life. (RRP $8.99 per 300ml bottle).

Pacific Optics and Official GC2018 Merchandise

Tel: 02 8586 6292 Fax: 02 9660 4419 E:


The PlatiDry brand offers a wide range of premium quality rain, Australian souvenir and beach umbrellas along with rain ponchos.


Platisox are made of premium breathable Egyptian cotton for your comfort and durability. There is a wide range available of business, sports, men, women, kinds and Australian souvenir socks.


Specialists in high quality yet very affordable prices mobile accessories such as power banks, USB cables, wall chargers, earphones, selfie sticks and much more.

Walk n Talk — More New Lines!

The Gold Coast 2018 Commonwealth Games (GC2018) represents a defining moment for the Gold Coast, Queensland, Australia and for the Commonwealth Games. From April 4-15, over 6,600 athletes and team officials from 70 nations and territories will converge on the Gold Coast to deliver 11 unforgettable days of worldclass sporting competition. An extravaganza of 18 sports, including the first ever presentation of Beach Volleyball at a Commonwealth Games, and the largest integrated para-sport program ever, will be presented in the first large-scale multi-sport spectacle to be hosted in Australia for over a decade. The Games will be attended by over one million spectators with the competition broadcast to a cumulative audience of some 1.5 billion people”. Wherever you are around the country, if you want to support the Athletes, support the Games or support Team Australia – Pacific Optics has a great range of Official Licensed Merchandise available now. Email or call 1300 237 425 to request a catalogue.

Published by C&I Media Pty Ltd (A division of The Intermedia Group) 41 Bridge Road (PO Box 55) Glebe NSW 2037

Platimex has got you covered

Pacific Optics, the manufacturer of Australia’s leading Tech accessory brand Walk n Talk, has been busy developing a strong pipeline of new lines for launch in the first half of 2018. Reinforcing that loyal consumers love Walk n Talk, the latest Aztec data to 17/12/17 shows that it experienced growth at an average of 22% across the channel. The first new line to be launched are the Walk n Talk Bluetooth Earbuds – the best-selling in ear 3.5mm jack headphones from the range with a new Bluetooth option for $24.95. It offers a 4 hour run time, high quality acoustics and inline controls. The second new line is the Walk n Talk 3 metre USB-C Charge & Sync Cable. The Apple 3 Metre cable is ranked in the Top 10 & the Micro USB just outside the Top 10 – so it is expected that this line will be very popular as well. To stock, call Pacific Optics on 1300 237 425 or email

Publisher: Simon Grover

Editor at Large: Keith Berg

Features Editor: Jeremy Gough

Commercial Director: Safa de Valois

Editor: Lucy Marrett

Graphic Designer: Adrian Tipper

Editorial Director: James Wells

Account Manager: Ben Curtis

DISCLAIMER This publication is published by The Intermedia Group 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. 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 © 2018 - The Intermedia Group Pty Ltd.

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February/March 2018 | C&I |  5


Get behind the Biggest Sporting Event in 2018! The Gold Coast 2018 Commonwealth Games (GC 2018) represents a defining moment for the Gold Coast, Queensland, Australia and for the Commonwealth Games. From April 4-15, over 6,600 athletes and team officials from 70 nations and territories will converge on the Gold Coast to deliver 11 unforgettable days of world-class sporting competition. An extravaganza of 18 sports, including the first ever presentation of Beach Volleyball at a Commonwealth Games, and the largest integrated para-sport program ever, will be presented in the first large-scale multi-sport spectacle to be hosted in Australia for over a decade. The Games will be attended by over one million spectators with the competition broadcast to a cumulative audience of some 1.5 billion people.

Check out the range of Official Licensed Merchandise

National Customer Service

State Managers

T: 1300 237 425 E:

QLD / NTH NSW John Papadakis 0404 499 792

Pacific Optics Pty Ltd


Powerbanks Lightning Cable

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Micro USB Cable $15 Earphones $12

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RRP: Kids UV400 Adults UV400

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SA Mick Brown 0417 454 816

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Georgia Kollaras

THE PASSION BEHIND KOLLARAS A conversation with Georgia Kollaras on growing up musical and transitioning into the dream job she didn’t know she wanted.


eorgia Kollaras considers herself a proud Wollongong girl, who was born and bred among the family business as well as the supportive Wollongong community. She grew up with her mum, dad and younger brother Jonathon, but joining the family business was not something that Georgia aspired to do because she had other goals and dreams in mind. It was only after she joined the business to support her goals, that she fell in love with the Kollaras business and really began to understand how hard the company was working for its clients. “Kollaras & Co really is a family business. It started with a tiny fruit shop, and my incredible grandfather in the late 60’s, and later down the track my father and uncle joined in their younger years; now my generation, the third one, is starting to make its way through the business. It's exciting times for us, as we continue to harness our success in the liquor game, and provide tobacco solutions to an even broader range of customers. “My father and uncle are currently the directors of the business and I’m also fortunate to work with my cousin John, our current Managing Director. John is my absolute inspiration. Family values are a very important part of our business and they always will be. We all have different strengths and weaknesses, meaning we complement each other in different ways.

8  February/March 2018 | C&I |

I fell head over heels in love with the Kollaras business and what we were doing for our customers”

“One of the family rules in our business, is that your surname gets you nowhere. Working for Kollaras & Co is simply a privilege… Not a right. You don’t get an opportunity unless you’ve earned it, you must have the necessary skills and experience, and you must apply for a role the same as any other applicant would. It’s about having the right attitude and work ethic. “I think that’s why we’ve been so successful; people know that as a Kollaras, you’ve earned your position and people have trust in you because they feel supported, considering you have a deep understanding for their role. You can appreciate their challenges and triumphs. This means that we can be future focused; It’s not about what we do now, it’s about how we secure the next 50-100 years of business. I honestly can’t imagine doing anything else.  “When I was growing up, I never even thought that I would be part of the business. I was lucky in my teenage years to take interest in a musical career, and was able to travel the world singing. My musical abilities took me to Asia, the United States, and Europe. “I joined the business on a casual basis in an administrative role to support myself because I didn’t think it was right for dad to continue to pay for my lessons. But it was then that I fell head over heels in love with the Kollaras business and what we were doing for our customers. I loved understanding customer needs and providing them

FACE FEATURE TIME with solutions or alternate options. I loved the challenge of exceeding someone’s expectations, and the feeling of helping a customer overcome something became simply addictive. “The most wonderful thing about working in our family business is that it’s rewarding. When you work with people you love, and your customers tell you that they’re benefiting from what you’re doing, it’s natural that you’re going to love your job. I’m inspired by everyone that works alongside us every day. My father always taught me to employ smarter people than you, and now that I am privileged to manage a great team, I truly understand what a great lesson that is. “I can honestly say that I get out of bed every day and think to myself ‘I’m excited that I get to go to work today’; passion is the one word I’d use to sum up myself and the company. “Our product portfolio has so many different products for different customers. It’s such a diverse range, that it’s difficult to pick a favourite. We treat these products like they are our children. Providing our customers with exclusive brands remains at the forefront of our business today. Exclusive brands are seeing significant growth the world over due to their substantial benefits, so in our business it’s imperative that we continue to support customers with a great selection that they can depend on. “Our brands proudly offer a high margin, a unique point of difference, and help our customers to build consumer loyalty – ultimately we have worked extremely hard to deliver a portfolio of products that can help our customers excel and maximise profit in whichever sector of the industry they operate in. “The project that I am very proud of right now is the new independent only beer called INDIE. I have had the pleasure of seeing this product come to life from inception, from brand name, to design, production, building a strong marketing plan, and seeing the benefits it now offers retailers - it's honestly been the most rewarding part of my career to date. “Another product that I’m excited about is King Street, which was the first cab off the rank for our tobacco business.

Starting early! Michael and Georgia Kollaras in his office.

Inside of the Kollaras warehouse.

Michael Kollaras (Director), Jonathon Kollaras (Account Manager – Consolidators), Georgia Kollaras (Marketing Manager), Tass Kollaras (Director), John Kollaras (Managing Director)

The most wonderful thing about working in our family business is that it’s rewarding.”

An action shot of one of the busy dispatch areas.

In fact, our whole tobacco portfolio is something that our business should be extremely proud of. We’ve been the exclusive distributors for tobacco companies in the past, so naturally have a prolific understanding of the tobacco world. It was when we really started developing a strategy for independents, that retailers began to recognise our talent in providing solutions. “Our liquor retailers were desperate for a point of difference with tobacco, so we developed a suite of independent-only brands to emulate our liquor strategy.  “When we introduced tobacco, we knew we had to offer tangible business benefits to our retail partners; We’d already done that in the liquor category, so we knew it was a recipe for success. Having gone to market with a solid solution for independents, we were ecstatic to see how quickly that business grew - it was literally an overnight success. We had people approaching us for business partnerships, which is the end-goal of companies who have operated in this sector for years. “Right now, I’m relishing the moment as Marketing Manager; I’d ideally like to be on the executive board because I think I’d be able to contribute to the business in a long-term, strategic way and bring some fresh ideas to the table. Next for me is my Company Directors course, so I’d like to be a silent observer on the board of directors for the next couple of years, so that I can start to understand the business on a higher level. I plan on knowing this business inside out, so I can add the best possible value to its operating goals. “For me, it’s not so much about what I want, it’s about what we can help our customers achieve. As cliché as that may sound, that’s truly the most rewarding part of this business. The real goal for us is to keep providing our customers with solutions; so, when customers tell us that we’ve a difference, that’s more rewarding than anything I could ever personally achieve myself.” C&I February/March 2018 | C&I |  9


© 2018 Twentieth Century Fox Film Corporation. All rights reserved. MARVEL © 2018 MARVEL.

Full T&Cs at Open to AU residents 16+ yrs. To enter buy specially marked V energy product & upload a photo to facebook or instagram with product to theme ‘What V Saved You From Today’, with #ineedvenergy between 9:00am AEDT on 5/3/18 & 9:00pm AEST 29/4/18 (entry period). Proof of purchase required. Entrants must assign copyright. Weekly winner judged by promoter on 12/3, 19/3, 26/3, 2/4, 9/4, 16/4, 23/4, 30/4, 10am at suite 604, 46 Kippax Street, Surry Hills, NSW, wins opportunity to play game (+ travel/accom up to $5,000 if not from Sydney). Game held in Sydney between 21/5/18 & 8/6/18 each weekly winner chooses 1 envelope out of 100, with odds of winning major prize ($50,000 au) being 1 in 100 otherwise win consolation prize ($500 au). Weekly winners notified on promoter’s website and game results published in the Australian on 15/6/18. Total prize pool up to $440,000. Promoter: Frucor Suntory Australia PTY Ltd ACN 060 091 536. NSW permit no. LTPS/17/18769, ACT permit no. ACT TP 17/02111 and SA permit no. T17/1954.



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Our big point of difference to some of the competition in the area is the sheer number of lines we can carry and we wanted to show off that range.”


A large store with significant potential in the heart of Melbourne’s CBD

hile any convenience store situated in the heart of a major city’s CBD can expect to do a solid trade courtesy of its prime location, the sheer volume of competitors can also make it difficult to stand out from the crowd.

However, when the EzyMart group took over the premises at 190 Queen Street in the heart of Melbourne, they were determined that it wasn’t going to be ‘just another store’ in the city’s already bustling convenience landscape. The organisation took its time to analyse the local needs and to assess the opportunity before throwing itself headlong into a complete re-fit and refurbishment of the 180 square-metre store. Manager Khaled Magableh said it was clear from the start that the relatively large size of the store presented it with a significant potential advantage over its rivals. “As well as doing a completely new fit out where we could create a new storage area and put in new fridges and all that sort of thing, we wanted our displays to stand out,” he said. “Our big point of difference to some of the competition in the area is the sheer number of lines we can carry and we wanted to show off that range.”

“It was great that we had such a large store to work with and, once we understood the local demographics and identified people’s needs, we were able to give them what they wanted.” EzyMart already has two other stores in Queen Street so it had a head start in understanding the unique mix that makes up the customer base. As well as early morning customers who may pop in on their way to or from the gym, and office workers who come in for snacks and the like, the store caters to the needs of tourists and a lot of them. “We have four hotels in very close proximity and, at certain times of the year, some 70% of our customers are foreigners,” said Mr Magableh. “And that is why we decided to put such a focus on overseas products.” The store – which is open 24 hours a day, seven days a week is staffed by four full timers and two casuals. It has been designed in such a way that the first thing that greets customers is a dizzying array of confectionery from nearly all corners of the world. There are lollies and chocolates from places including the UK, United States, Switzerland, Germany, Belgium, New Zealand and South Africa. “We put on a great display at the front and really try to draw customers in with our lollies and chocolate,” said Mr Magableh.

Some three months after opening its doors following the renovation, customers have responded enthusiastically to what has been created.

“We have some things that customers have never seen before and we have had customers come in and buy the whole shelf full of goods because they say they don’t know when they will get the chance to get that particular product again.”

“We have already found that people are very loyal to us and will walk from blocks away past other stores to come here,” said Mr Magableh said.

Having enticed new customers into the store to perhaps make an impulse purchase they hadn’t planned on, EzyMart is keen to ensure that they buy something more than a lolly or two.

12  February/March 2018 | C&I |

STORE REVIEW “We want them to buy other things while they are here, so we push water, cereals, milk, cigarettes, bread, recharge vouchers, nuts, all the usual products,” Mr Magableh said. “We also offer special bundle deals like water and a chocolate bar at a package price.” With so much competition in such close vicinity, Mr Magableh said the products at 190 Queen Street are keenly priced, and that customer service is more important than ever. “People from the offices and all customers love to be greeted by a smile and for our staff to be proactive and ask them what they have been doing during the day,” he said. “It relaxes them and helps them feel at ease and this service is just critically important for everyone.” The relaxed ambience of the store is very much helped by the coffee bar at the front of the shop, which is another feature Mr Magableh was excited to see when the store was re-designed. There are two coffee machines – one for full cream and the other for light milk or skimmed milk – and a small area with five seats offering customers a great view of the street scene on the corner of Queen Street and Little Bourke Street. “People come and sit here in the morning with their newspapers and have a coffee and enjoy the area,” he said. The coffee machine that looks out onto the street

“We have our regulars and this becomes part of their daily routine.” For Mr Magableh, watching how the theories behind the new store design translate into the real world is especially satisfying. The 30-year-old, who in addition to managing this store is the EzyMart’s Victorian State Merchandising Manager, has kept very busy taking numerous courses in marketing, accounting, merchandising, entrepreneurial management, and business. “What I have studied has been a huge help for me and it was great to have such a big store to work with here and have some input into where things went,” he said.

We have already found that people are very loyal to us and will walk from blocks away past other stores to come here.”

“I am interested in specific design and the location of products and so it is fascinating to see what works and what doesn’t.” Mr Magableh has come a long way since starting his convenience career as a part-time store worker while studying at Newcastle University. However, this passion for what he does shows no sign of abating. “I guess managing these stores means I am pretty much always on call,” he said. “Sometimes I will get a call at 1am in the morning because there is an issue somewhere but that is all part of the job and it is a job I love.” C&I A view of the store from the back

The sign out the front of the store

The worldwide range of confectionery

February/March 2018 | C&I |  13

The peak body for the Australian Convenience Store industry, celebrating over 25 years of working for the industry.

AACS NEWS ROUNDUP By Jeff Rogut, CEO, Australasian Association of Convenience Stores (AACS)

Counting the cost of tap-and-go

AACS will continue to lobby the Government, regulators and the industry on this issue.”

Consumers have long been encouraged to explore their options if they’re dissatisfied with their bank. Now we have a Royal Commission into the banking sector. At the AACS, we have our own issues with the banks, first and foremost the minimisation of merchant charges for tapand-go payments. As it stands, payments on dual-network debit cards must be processed through either the MasterCard or Visa networks, rather than the lower-cost eftpos system. There are more than 25 million of these cards in the market and it’s estimated that processing tap-and-go transactions through Visa and MasterCard instead of eftpos costs businesses somewhere between $290 million and $550 million each year. According to the latest RBA figures, merchants are charged 0.58 per cent if the payment is processed by Visa or MasterCard. This is compared to an average 0.26 per cent for a debit contactless payment on eftpos. Being able to route tap-and-go transactions through the eftpos network has the potential to save convenience stores thousands each year. Yet many small businesses don’t have this option. It’s an issue that, until recently, has been out of the public conscious. But now we have traction in this important area. The RBA noticed the problem and urged the banks to reconcile the situation.

Then, a report from the House of Representatives Standing Committee on Economics recommended that banks “be required to give merchants the ability to send tap-andgo payments from dual-network debit cards through the channel of their choice” by April 1, 2018. The report notes that consumers may override this merchant preference if they choose to do so. But the crucial point here is having the right to choose. If the banks fail to deliver on this timing, the report recommends the Payments System Board should take regulatory action. We want to ensure that any move by the banks to make this option available to retailers includes all retailers, small and large. For our part, we’re pressuring banks to comply without delay. AACS will continue to lobby the Government, regulators and the industry on this issue. Contact our Association if you meet any resistance or don’t get a fair hearing from your bank. We can keep the proper channels informed. We are moving towards a cashless economy and it’s vital that transaction fees are kept as low as possible. Lend your voice to the cause so we can ensure that small retailers are not left out of any implementation program by the banks.

Destination China It’s official - in September this year the AACS Overseas Study Tour will head to our most exciting destination yet: China. We often talk about the importance of innovation. But those who join us on the tour will experience a convenience industry unlike anything they’ve seen before. The lessons to be learned and insights to be gained will be limitless. Apps to open the doors to unmanned stores. Holographic virtual assistants. Conveyor belts. 360-degree bar code 16  February/March 2018 | C&I |

There’s always a lot happening in this dynamic industry and things are only ramping up. Here’s to an exciting and successful 2018.”

scanning. Monthly bill settlements. All geared towards the customer and all seeking to maximise convenience. The developments in the Chinese convenience industry have been rapid in recent times, with huge strides being made technologically, both in store and in terms of connecting with customers. Join us to see and experience an entrée into companies such as Alibaba and Tencent, global leaders in their field which recognise the opportunities in convenience. We’ll receive exclusive briefings with these companies and visit other leading retailers as well. The tour will kick off in Shanghai and we’ll travel by highspeed rail to surrounding cities to see other locations. Exact dates are still being firmed up, so watch this space. The AACS Overseas Study Tour consistently changes people’s perspectives and opens their eyes to new opportunities, and this year promises to be no different. Join us on the journey in September.

Closer to home

China isn’t the only destination on our agenda this year. It’s also important to gauge the innovations happening in our own backyard. Everyone is encouraged to join us on the 2018 AACS Downunder Study Tour to visit some of the stores around Sydney that are redefining convenience in Australia and the retailers which are shaping the future of our industry. Ideal for Account Managers, Category and Marketing Managers, Sales and Operations Team Managers, the tour will include a presentation on our industry, and we’ll hear from senior executives and gain insights into their store operations. The AACS Downunder Study Tour appeals to up and coming leaders in our industry and provides invaluable networking opportunities. The tour takes place on May 31 and June 1. Contact AACS for further details.

AACS members to challenge their peers and apply some creative, innovative and out-of-the-box thinking to what the future of our industry might hold. This year’s competition asks entrants to: Identify current and emerging challenges for the convenience industry, and present innovative solutions and opportunities for convenience retailers and their suppliers to compete in this evolving environment that will deliver ongoing profitable sales growth for the channel and address the challenges. Use local as well as overseas examples and data in your response. It’s open to all employees of member companies aged between 21 and 36, and the winners will get a ticket to join our AACS Overseas Study Tour to China in September. Send your presentations to by Friday 11th May 2018. Finally, the AACS State of the Industry Report will be launched in Brisbane (May 2), Melbourne (May 3) and Sydney (May 4). In many ways the Bible for the industry in Australia, AACS members are invited to attend to get the most comprehensive and up to date insights into the performance of the convenience channel and future trends to watch for. Book your place by contacting AACS today. There’s always a lot happening in this dynamic industry and things are only ramping up. Here’s to an exciting and successful 2018. C&I

Key dates in 2018 As ever, the calendar of AACS events and timeline of initiatives is full this year. We recently launched the AACS Peter Jowett Convenience Industry Award for 2018, providing a unique opportunity for February/March 2018 | C&I |  17


1 E

+ 0 RS O T 3HIBI X




In partnership

EXHIBITOR EXPRESSIONS OF INTEREST ARE NOW OPEN C&I Expo 2018 will be held at the Melbourne Convention & Exhibition Centre on 15 to 16 August 2018. Once again, the Australasian Association of Convenience Stores has embraced the event and will be presenting a comprehensive educational program plus staging its glittering Gala Awards Dinner.

WHY EXHIBIT? C&I 2018 and the AACS Gala Awards Dinner are the only FMCG based events that deliver: • Professionally staged and managed large scale events focused on convenience and impulse retailing and sponsored by the Australasian Association of Convenience Stores (AACS) • Access to independent operators who may not be receiving adequate representation • Access to the major corporate and independent chains • An opportunity to mix socially with some 600 suppliers and retailers at the AACS Gala Awards Dinner • Industry-wide saturation advertising for six months beforehand To find out why you should exhibit at C&I 2017 and to inspect the floor plan get in touch with Safa de Valois.

DON’T MISS THIS WORLD-CLASS NETWORKING EXPERIENCE FOR CONVENIENCE AND IMPULSE RETAILERS ACROSS ALL BANNERS AND BRANDS. Safa de Valois Publisher & Commercial Director, C&I Media Phone: 02 8586 6172 Mobile: 0405 517 115 Email:

Ben Curtis Account Manager, C&I Media Mobile: 0415 404 264 Email:


RELIABLE AND RESILIENT Tobacco continues to deliver strong sales and profits

Tailor made cigarettes still account for 90.3% of dollar sales in the tobacco category”


espite the seemingly endless series of challenges it faces, tobacco has consistently demonstrated remarkable resilience to remain a critical component of convenience store profitability. In the face of severe restrictions on display and marketing, plain packaging legislation, and an ongoing series of hefty excise hikes, the category’s sales through the channel have stayed remarkably strong. However, continued careful management will be required if they are to remains so. With the latest round of annual 12.5% excise increases not due to end until September 1, 2020, the way in which store operators manage their pricing will be especially critical. While better opening hours, ease of car parking, and accessible locations means price may not be as important to convenience customers as it is in other channels, there are limits. Imperial Tobacco Australia (ITA) communications executive Michelle Park said: “The proportion of convenience shoppers who compared prices with the last purchase occasion has been steadily growing.”

retailers have successfully maintained a consumer-led range while rationalising percentage margins. Imperial Tobacco says the channel’s future success in tobacco sales will, in part, be driven by its willingness to reduce its price differential to other discounters, and therefore attract and retain more shoppers. It said that operators should ensure pricing is consistent by avoiding frequent changes. “Sporadic discounts should be avoided in favour of a constant, competitive price,” said Ms Park. “This approach will encourage repeat purchases from shoppers as they become accustomed to the store’s offer and slowly incorporate it into their routine.” Philip Morris Australia said that while price is a factor to consider, it is not the only one that convenience can leverage.

“Over the last 12 months the proportion who compared prices has grown from 23.1% to 30.9,” she said.

Philip Morris’ national group manager – impulse, Daniel King said: “The opportunity for this channel remains its distinct point of difference, being a large spread of convenience outlets and the ability to be open for longer hours compared to other channels.”

However, despite its higher pricing, she said the petrol and convenience channel share of trade has remained strong as

“Convenience continues to perform admirably given upward pricing trends.”

20  February/March 2018 | C&I |

TOBACCO FEATURE While it is true that tobacco saw 4.5% dollar growth through convenience in 2016, a closer look at the data contained in the latest Australasian Association of Convenience Stores (AACS) State of the Industry Report confirms there is no reason for complacency. In 2015, the dollar growth was 5.2% and, in 2014, it was even stronger at 8.9%. And, in terms of volume, rather than value, tobacco is in decline across all channels. Nonetheless, British American Tobacco Australia (BATA) said there was no evidence that excise hikes and plain packaging legislation have resulted in any decreases in smoking rates beyond the long-term trend. BATA’s Senior Corporate and Government Affairs Manager Josh Fett said: “The big shift in the market in recent years has been that price sensitive smokers are looking for cheaper alternatives”. “The nature of convenience shoppers has somewhat insulated the channel and it has a better sales mix, but the low price segment is growing quickly.” For any retailers looking to get the most out of the tobacco category then, it is important to focus on consistency in both range and price. Stores should implement a core range of products that balances value-oriented brands for price-conscious consumers with premium brands for the more discerning smoker. The tobacco industry as a whole also remains deeply concerned that the large excise increases and plain packaging legislation has fuelled the black market by making it even more lucrative for organised criminals to smuggle illegal tobacco into Australia. A pack of 20 cigarettes is up to eight times more expensive in Australia than South Korea, for example and these high profit margins can provide an attractive and valuable source of income for organised crime. The latest KPMG report on illicit tobacco in Australia was released in May 2017 and showed illicit tobacco now represents a 13.9% share of total consumption. This means that roughly one in seven cigarettes is now illegal. Leading tobacco industry players say convenience stores should ensure they always buy their products direct from the tobacco industry or from reputable wholesalers. With price-conscious consumers continuing to trade down, subvalue cigarette sales have been strong through all channels but they have been particularly relevant in convenience where prices are generally higher than supermarkets or tobacconists.

Imperial Tobacco said this trend has led to incredible growth for the JPS brand family over the past three years, and it says Peter Stuyvesant 20s and 25s also overtrade in convenience. For its part, BATA said its portfolio is well aligned to convenience with brands such as Dunhill, Benson & Hedges and Winfield selling well through the channel, with cheaper brands such as Rothmans also growing quickly. Philip Morris said its Marlboro, Peter Jackson and Bond Street brands have been performing strongly in the channel and it has also observed a shift to small pack counts, as well as one towards cheaper brands. It says this means convenience can still gain outcomes via brands like Bond Street which is well established at this end of the market. The rise in demand for lower price cigarettes has also seen other companies such as tobacco wholesaler, Richland Express, and the Tobacco Imports Company (TIC) – which is part of the Kollaras Group – seek greater market share. TIC says it aims to provide customers with competitive products that offer above industry standard margins, and a significant point of difference.

AT A GLANCE • The proportion of convenience shoppers who compared prices with their last purchase has been steadily growing. • Operators should avoid sporadic tobacco discounts in favour of a constant, competitive price that will encourage repeat purchases from shoppers as they become accustomed to the store’s offer. • Convenience store staff should exceed shopper expectations through category knowledge and customer service. • Future channel success in tobacco will be driven by ensuring the right products are ranged, on shelf, and visible on the price board.

TIC marketing manager Georgia Kollaras said: “We have stayed consistent with our pricing strategy – ‘everyday value offering’ – and our King Street/Brooklyn and Cleveland brands have continued to grow and do very well in the convenience channel”. “Convenience store operators have been historically frustrated in their inability to compete and maintain margins and we as a ‘low cost operator’ saw an opportunity to jump in and assist to ensure everyone remains on a level playing field.” Despite the inroads being made by some less established companies, the AACS State of the Industry report reveals that most tobacco users are still highly brand loyal, with research showing 85% of all tobacco smokers purchase their usual brand when visiting a petrol and

Plain packaging legislation has the tobacco industry concerned about the black market. February/March 2018 | C&I |  21


Convenience continues to perform admirably given upward pricing trends.”

convenience store. According to Imperial Tobacco, the top five tailor-made cigarette brands – JPS, Winfield, Rothmans, Bond Street and Peter Jackson – still account for 80% of volume sales in convenience. ITA Profiler Tracker data (July to September 2017) revealed that 31% of convenience shoppers said they would leave the store if their products were not available. Tobacco out of stock can then be extremely costly as customers who can’t find their favourite product may never return to that store again. To prevent this, it is critical that stores regularly review their turn rates and stock on hand to ensure adequate stock weight. The tobacco unit should be restocked during quieter periods throughout the day to guarantee stock is on shelf during busy times. Holding additional stock during peak periods such as weekends and local events can also help avoid out of stocks. Understanding the customer in a rapidly changing tobacco environment is absolutely vital for stores seeking to maximise the category’s ongoing potential. According to ITA Consumer Profiler Database (Oct 16 – Sep 17), 60% of tobacco shoppers in convenience are male with an average age of 32 years. They are more likely to be employed full time and smoke at least several days per week. On average they will make over 100 tobacco purchases in a convenience outlet per year. Some 49% of these smokers visiting convenience stores do so primarily to make a tobacco purchase. However, only 79% of their average spend of $42 per visit is on tobacco, they spend an average of $9 per visit spent on other items. While tailor made cigarettes still account for 90.3% of dollar sales in the tobacco category, customers’ continued quest for greater value has also seen demand for roll your own (RYO) tobacco rise

22  February/March 2018 | C&I |

sharply. Champion continues to be the leader in RYO attracting nearly 30% of consumers. Winfield and JPS RYO also continue to perform strongly, with other niche brands such as White Ox and Port Royal capturing 11% collectively. As RYO grows, so too do complementary products such as papers and accessories like filters and machines. While it is important for retailers to operate within legislation regarding tobacco displays, it is also important that they maximise any opportunity to communicate their offer to consumers. They should be sure to implement and maintain a price board or price tickets (where permitted) to communicate their offer and to inform consumers who were previously unaware that they sold tobacco products. Many shoppers utilise the price board, but others prefer to ask the retailer for a price comparison. It is vital then that all staff are educated on the category to ensure these footsteps translate into transactions. Customers who may be frustrated with wait times, lack of category knowledge and general service in grocery may prefer the convenience option.  While no one would pretend that the next three years of tobacco tax rises won’t continue to put pressure on the category through convenience, it is certainly not all doom and gloom. Convenience stores have been successful in adapting to the changing needs of consumers by adopting the right range and competitive offer, and more of the same will likely be required as down-trading is set to continue. There is every reason to suspect though that – with continued good management – the category will continue to be a resilient and profitable one. C&I * Convenience and Impulse Retailing would like to thank Imperial Tobacco Australia, British American Tobacco Australia, Philip Morris Australia, and the Kollaras Group for supplying information for this article.

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SWEETS AND SUGAR How sugar is shaping convenience store sales.

Consumer trends for healthier products have not dampened the industry outlook.”


ollies and sugar confectionery have always been an easy grab-and-go option for people on the move. Whether it is to snack on during a car trip, to fill a bowl at a party or just for the sake of it, the range available and deals on offer at C-stores and continue to be a crucial part of the offering and can have a major impact on up sell within the store.

Despite the constant talk of sugar taxes and the reminders about how unhealthy too much sugar is, those with a sweet tooth just can’t seem to walk away. According to an industry report from Confectionery News, the 2018 sales outlook of confectionery is ‘healthy’.

TRENDS AND INNOVATION IRI Worldwide Channel Insights Analyst Mairead McElvanna said: “Confectionery is the 4th largest department in Petrol & Convenience (behind Tobacco, Drinks, and Food-To-Go), but is in decline of -2% vs. last year, equivalent to a $6m category retraction”. “However, there is some good news around previous innovation: there were over 300 products launched in 2016, which collectively increased their dollar sales by 4% in 2017 (their second year of sale),” he said. Nestlé Confectionery head of marketing Anna Stewart said Allen’s were currently trialling a reduced sugar Allen’s SKU in its Allen’s Lollysmiths pop-up boutique, ‘Sweet but Sensible’, with 25% less sugar.

“Fears of potential sugar taxes on confectionery and consumer trends for healthier products have not dampened the industry outlook,” the report said.

“Nestlé is a signatory to Be Treatwise, and we position lollies as a treat within a consumer’s diet” she said.

Confectionery News surveyed over 725 people to put together the report, with respondents hailing from a range of positions with the confectionery industry.

“We place the Be Treatwise icon on our confectionery to help explain the place that confectionery has as a treat food, as part of a healthy balanced diet and active lifestyle.

Around half of the respondents said they expect greater export sales in 2018, than they saw in 2017.

“In addition, we feature visual portion guidance with the Nestlé portion device on back of pack.

24  February/March 2018 | C&I |


There were over 300 products launched in 2016.”

Lollies on special in a C-store

On-the-go sugar and chocolate snack packs

A ‘pick ‘n’ mix’ approach to choosing and purchasing confectionery

KEY INSIGHTS • 53% Female versus 34% average (significant difference)


“Lollies continue to be an impulsive purchase product with more than 65% of shoppers not planning on purchasing before they walk into store,” she said.

HOW NPD SHAPES THE MARKET Corbion, the global market leader in acids and emulsifiers for food and confectionery said that flavour differentiation and a stable product are the crucial factors that determine successful products.

Eclipse Mints (Wrigley) The Natural Confectionery Co. (Mondelez) Extra White (Wrigley) Mentos (Stuart Alexander) Allen’s Party Mix (Nestlé) Eclipse Chewy Mints (Wrigley) Extra Active (Wrigley) Tic Tac (Ferrero) Allen’s Snakes Alive (Nestlé)

“Different key consumer groups (children, adults, geographical spread) demand new and increasingly extreme flavour profiles of these products.” Confectionery News said that new product developments are what will drive the industry forward in 2018. “Consumer loyalty is declining and the market is open to new, innovative, high-quality confectionery products. The choice of acid, buffers and functional ingredients is critical in this process,” it said. Ms Stewart said this year has seen a continued love for Allen’s classic lollies. “This year our Allen’s Green Frogs triumphantly hopped backed into stores with the launch of Frog Family,” she said.

• 55% of purchases happen between 2pm6pm versus 32% average (significant difference) • 39% of shoppers are on a treat mission • 24% of shoppers purchase for someone else • 50% of shoppers buy usual brand/product • 26% buy because of a promotion • Average basket size is 3.2 items 68% above average although frequency is 1.6 times per week 24% below average • 40% of shoppers are on a fuel mission (21% above the average) • 25% are on a snack mission (average is 6%) Figures from Comvenience Measures Australia

February/March 2018 | C&I |  25

SUGAR CONFECTIONERY “Leveraging the inherent easy browsing advantage of smaller scale P&C stores, BP has been using end-of-aisle gondolas to draw attention to the newly introduced products.”

GLOBAL APPEAL Increasingly, more and more C-stores and companies are realising that consumers don’t always want the ordinary, and that sometimes having options from around the world is the way to. Khaled Magableh of the Queen Street Ezymart in Melbourne, saw the appeal of importing confectionery from various parts of the world to draw customers in.

Sugar confectionery offers so many colourful choices and flavours!

Allen’s will be launching a number of exciting new products in 2018.”

“Allen’s will be launching a number of exciting new products in 2018. In February we launch the latest addition to our ‘Fruits & Cream’ range.” Ms Stewart said that currently, Allen’s is the number one market leader in lollies in the convenience channel with 99% brand awareness and loyalty significantly higher than any other brand in the category. According to the Australasian Association of Convenience Stores (AACS) State of the Industry Report (SOI), due to the relatively small space available in store, the P&C channel can be perceived as restrictive. “But this can be an advantage for suppliers when it comes to NPD,” it reported. “Confectionery, and indeed impulse snacks more generally, rely on the “new news” of innovation (mostly flavour rotation) to give consumers reasons to keep coming back and spur incremental spend.”

SHOWCASE THE SUGAR As previously noted, 65% of sugar confectionary shoppers in C-stores do not plan to make a purchase. With this in mind, it is crucial to ensure that all products are displayed correctly with visible pricing labels, to ensure those 65% of customers have access to their impulse purchases. Ms Stewart said as lollies are such an impulsive category, putting them in aisles can negatively impact sales performance. “Medium lolly bags are the biggest sub-segment in both grocery and convenience channels,” she said. “To maximise sales, place lolly bags on the ‘window run’, which is the way customers walk from going into a store to the front counter. “For single consumption lines such as Lifesavers, ensure it is on or under the front counter.” The AACS SOI said the petrol and convenience sector is a good place to expose customers to NPD in “dedicated zones”. “New products are more easily noticed within smaller in-store environments,” it reported. 26  February/March 2018 | C&I |

The store – which is open 24 hours a day, seven days a week is staffed by four full timers and two casuals. It has been designed in such a way that the first thing that greets customers is a dizzying array of confectionery from nearly all corners of the world. There are lollies and chocolates from places including the UK, United States, Switzerland, Germany, Belgium, New Zealand and South Africa. “We put on a great display at the front and really try to draw customers in with our lollies and chocolate,” said Mr Magableh. “We have some things that customers have never seen before and we have had customers come in and buy the whole shelf full of goods because they say they don’t know when they will get the chance to get that particular product again.” Having enticed new customers into the store to perhaps make an impulse purchase they hadn’t planned on, EzyMart is keen to ensure that they buy something more than a lolly or two. Lollies and sugar confectionery have proved to be a good option for retailers to get extra sales from customers. Putting products on sale and making them easy to access and purchase is a great way to boost sales. Continued innovation ensures that there is almost always something new for consumers to taste and try, knowing your customer and the current trends will be of great benefit to any C-store. C&I * Convenience and Impulse Retailing would like to thank Nestlé, Convenience Measures Australia and IRI Worldwide for their contributions.


Graph provided by Nestlé

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Booming segment bursts out of the gym and into the mainstream

“Protein bars are increasingly becoming a popular on-the-go snack for health conscious consumers.”

Consumers are increasingly aware of the health and energy benefits of protein.”


he explosion in the popularity of protein products such as bars, beverages and balls shows no signs of slowing up as the health and wellness trend continues to transform the convenience store landscape.

Supermarkets have for some time been devoting more and more shelf space to protein, and the convenience channel is similarly recognising the growing potential for the high-margin products. Broadening their protein offer can help convenience stores attract new customers and increase the average transaction value. A recent report from market research company Euromonitor International said: “few ingredients in recent memory have experienced protein’s sustained and meteoric rise”. “Thanks to a greater emphasis on communicating protein’s health claims beyond muscle health, marketers are generating interest among new demographics, including females, millennials and the elderly,” said the Euromonitor International report. “As protein’s health halo continues to shine brighter, food manufacturers are increasingly pumping up the protein content of their fortified/functional food and beverages, in an attempt to capture consumer spending.”

The Crankt Max Protein Double Espresso beverage

28  February/March 2018 | C&I |

While supermarkets may be able to tap into the needs of customers making a fairly large buy-for-later protein purchase, convenience caters to customers who are buying in smaller quantities for immediate consumption. As health-conscious consumers become increasingly educated about protein and the vital role it plays in their diet, the evidence suggest they are now expecting to find protein products on convenience store shelves and in the fridges. While they may not be anticipating

PROTEIN BARS & BEVERAGES the same range of protein products in convenience as they would in grocery, they are looking for a range of protein products that form part of a credible nutritional snacking offer.

throughout the store with bars on shelf and shakes in a chilled fridge. It said clear branding allows customers to continuously come into contact with the product in different areas through the store.

Bounce Australia, which has been enjoying sustained success with its range of protein energy balls, says consumers are increasingly aware of the health and energy benefits of protein and are looking for natural snacks to grab on the run.

“As they move to the cashier where they are stationary for a few minutes, they might see our product placed in front of them and that’s when a purchase opportunity is evident,” Ms Chowhan said.

Bounce Australia CEO Stephen Hamilton said: “We all find ourselves in a situation where we need to grab something quickly, and preferably healthy, and the convenience channel can help consumers make that decision with focused ranging by the top brands and clean planogramming”.

“Offering sample tastings, along with promotions and giveaways to excite the customers are all optimal ways to further maximise sales.”

“A product that is seen in a consumer’s weekly grocery shop will be the product purchased at a convenience store.” While the majority of supermarket shoppers tend to be females and mums, foot traffic into impulse outlets is more mainstream, allowing wider exposure. The typical protein product shopper in the impulse channel was once seen as being the likes of tradies, sales reps, and gym goers looking for immediate consumption. However, the protein trend is quickly moving to become a part of the mainstream health and wellbeing movement. As the lifestyle of the average Australian gets busier, there is a growing snacking culture which sees consumers looking for nutritious ready-to-eat food products. In some ways, there are now two styles of category shopper, lifestyle choice shoppers who purchase protein bars and products as part of their day to day routine, and the health and fitness conscious buyer who are looking for an expanded choice of protein powders and shakes. Bounce Australia said its Coconut Macadamia Protein Energy Ball and Peanut Protein Energy Ball are both in the top five selling SKUs nationally within the nutritional snacking category, and it believes it is millennials who are driving category growth. “Our research shows that men are more likely to purchase protein drinks or balls and bars that are higher in protein whilst women are more likely to opt for a balanced product profile,” Mr Hamilton said. “Such consumers have a positive attitude toward healthy eating and are willing to pay more for a quality product.” Crankt Protein also sees convenience as a natural place to sell its range of protein shakes and bars. Crankt Protein marketing manager Maleeha Chowan said: “Consumers dropping into these outlets are generally in a hurry and always looking for a quick fix, an on-the-go option – whether is a loyal consumer or a new consumer”. “Although ranging may be limited, it is the placement which gives exposure and any outstanding promotional activity that grabs attention.” Crankt – whose leading protein shakes include chocolate and choc honeycomb, and whose leading bar includes choc caramel and cookies and cream – said its products should be dispersed

While the supermarket shopper will spend more time making buying decisions and typically will spend quite a bit of time in the health food section, the petrol and convenience shopper is in more of a rush, and stores don’t have long to get their attention. Crankt Protein said that, for shakes, promotional bright stickers on fridges are effective sales boosters and swing tags on bottles can alert customers to the fact there is a prize to win. It said gondolas and cashier areas are best suited for promotional activity around bars. For its part, Bounce Australia, the very nature of a grab on the run purchase means sales are higher in stores where products are placed at the point of sale. “The size of our products is perfect for such placement or as part of a deal like a water and a Bounce ball,” said Bounce Australia’s Stephen Hamilton. “Protein bars, balls and shelf stable drinks makes sense to be in the same planogram.” He says that the planograms that are confusing to consumers are those that add healthy confectionery options like muesli, oat and nuts bars, or products that are dubbed as protein but have a small trace of protein in the recipe.

AT A GLANCE • The protein product trend is quickly moving to become a part of the mainstream health and wellbeing movement. • Consumers are becoming increasingly knowledgeable about ingredients and stores need to be well informed about the product they are selling. • Operators should ensure that point of sale merchandise communicates product benefits rather than just brand and price. • Protein products can be an impulse on the run purchase and so sales are higher in stores where products are placed at the point of sale.

Food manufacturers are increasingly pumping up the protein content of their fortified/ functional food and beverages.”

While some stores wrestle with the best way to display and sell protein products, the Australasian Association of Convenience Stores (AACS) said new store layouts were placing more emphasis on dedicated health sections. “The strong performance of brands like Bounce has dovetailed with the dedicated focus on better-for-you zones within petrol and convenience retail, such as those used in the modernised Caltex stores,” AACS said in its 2016 State of the Industry Report “For example, specific zones reflect more concerted efforts to offer healthy food alternatives for health conscious Australians on the go.” As the average consumer becomes increasingly knowledgeable, it is not simply about stocking products though. AACS said brands in the segment are now facing the challenge of

Crankt Protein bar Choc Caramel flavour February/March 2018 | C&I |  29


The colourful and flavoursome range of Bounce protein balls

Men are more likely to purchase protein drinks or balls and bars.”

being the subject of additional scrutiny from consumers about ingredient specifics – especially sugar and the length of the ingredient list. Market research company Ipsos, for example, said that one out of every two adult Australians now strongly believes that packaged products have too much sugar in them. At store level, operators can ensure that point of sale merchandise communicates product benefits rather than just brand and price. For their part, manufacturers can use packaging both to explain their product’s benefits and make it stand apart from the new protein brands coming into the market. Noting that Bounce recorded 100% dollar growth in 2016, AACS SOI Report said the benefits of high energy, protein rich, natural snacks are clearly articulated via Bounce’s frontof-pack health messaging on bright coloured packs that create immediate shelf impact. “Bounce growth has also been boosted by pack format innovation, with a 30g format introduced in 2016 to align with the smaller footprint of P&C stores at a price point that competes with confectionery products,” the report said. “Similarly, the 120g resealable pouch bag format developed in 2016 resembles sugar confectionery hang packs.” Bounce Australia said the challenge for the consumer is to understand how to read the back of a pack to know exactly how much protein and nutrition they are really getting. “Effective packaging, both design and content, helps a brand rise above the noise in its category,” Stephen Hamilton said.

30  February/March 2018 | C&I |

“Bounce’s packaging is a reflection of what our customers want to see and helps them assess the product quickly.” Crankt agrees that packaging is crucial in the increasingly competitive protein product space, and said its all-black branding is both attention grabbing and practical. “Our shakes come in resealable bottles which minimises the risk of leakage,” Ms Chowhan said. “Bars are a treat size enough to fit in a hand bag or gym bag.” While packaging can provide vital information about the health benefits of certain ingredients, it is also important that convenience store staff are well informed about the product they are selling and are able to offer guidance to customers if it is requested. “Educating the operator is just as important as educating the customer of our product as we need the operator to fall in love with our product just as much as the customer,” Ms Chowhan said. “In a smaller setting such as an impulse outlet this is more achievable and effective due to product and brand availability.” This staff expertise is likely to be ever more important as the segment quickly evolves and innovates with new forms, new packaging and new tastes. As consumers continue to learn the important role protein plays in their bodies, it seems certain then that sales of protein bars, balls and drinks will continue to grow and convenience is well placed to benefit. C&I * Convenience and Impulse Retailing would like to thank Crankt, Bounce Australia and Euromonitor International for supplying information for this article.

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THE WAY OF THE FUTURE Minimum purchase and spend requirements, can take a real toll on a business’s profitability, so it’s worth looking at why.


ouging extra money from customers is not something that will gain retailers favour with their customers, retailers should be re-thinking their point of sales system strategy in 2018, to ensure they reach their maximum potential with sales. As cash is becoming a less common staple in wallets, retailers are seeing more and more credit cards and Eftpos transactions. However ditching cash from the equation can create some problems for the customer when making a purchase. Aside from facing possible surcharges just to pay on a credit card or via Eftpos, they might find themselves faced with a minimum spend amount. 34  February/March 2018 | C&I |

When customers are in a shop for a quick on-the-go purchase, the last thing they want is to be told there’s an Eftpos minimum purchase requirement that they need to meet before they can finalise their purchase. These minimum purchase requirements can have a real impact on businesses and it’s almost always, negative.

SO WHY DOES THIS HAPPEN? Enforcing a minimum spend limit is not something that the banks enforce on retailers; it is instead a way for retailers to make money.

SPECIAL FEATURE This practice is commonly known as the ‘chewing gum’ tax, because it is a cost enforced on customers who try to purchase a small value item from the store. If the purchase price is lower than the retailer would like it to be, they can tell the customer that they will not sell them the product unless they purchase something else to go along with it, thus increasing the value of their purchase. The retailer wins and the customer, if they follow through— loses out, having just spent more money than they were anticipating to.

WHAT DOES THIS MEAN? Essentially, the more often a retailer can ‘trap’ the customer with this technique, the more money the retailer makes per sale.

The Zero Minimum campaign encourages retailers to provide customers the choice to make cashless transactions with no restrictions.”

This often results in many customers choosing to make their small purchases elsewhere, at a store that won’t make them purchase more than they came in for. Herein lies the negative impact on retailers, instead of making money they are losing it along with the chance for repeat customers to their C-store. MasterCard said that retailers will lose up to 40 per cent of their business if they impose restrictions on low value transactions. “Such businesses [who don’t accept cards] are already losing out, although they may not know it. MasterCard research undertaken by Ipsos revealed that two in five Australian cardholders already avoid businesses that don’t allow them to use cards for small transactions. By accepting cash or cards for all transactions, their businesses could be 40 per cent bigger,” the MasterCard website stated.

MASTERCARD $0 MINIMUM MasterCard recently introduced a card system intending to “transform the way people can choose to pay for goods”. According to the MasterCard website, “The Zero Minimum campaign encourages retailers to provide customers the choice to make cashless transactions with no restrictions”.

CREDIT CARDS ACCEPTED WITH A $10 MINIMUM PURCHASE A sign commonly found in smaller retail stores.

In recent research commissioned by MasterCard amongst Australian cardholders: • 62% find it frustrating when they can’t use cards for smaller transactions • 2 in 5 (44%) already avoid shops that don’t allow cards for smaller transactions • 61% prefer to pay with cards over cash for smaller transactions (over dealing with small change) • 84% resent paying a fee for smaller transactions The benefits of enabling customers to use their cards for low value transactions are the speed, convenience and seamless experience that allows them to pick and choose who they buy from, and what they buy. Card transactions offer convenience and are more safe and hygienic than cash.

AVOIDING THE CHARGES When it comes to avoiding paying extra, a customer’s response may vary. Some may opt to pay with cash, others, depending on what they are purchasing will walk away. A customer has the right to ask for alternative methods of payment, instead of feeling boxed-in to purchase more products to meet the minimum. February/March 2018 | C&I |  35


Consumers have now found that a card payment is faster and more convenient than alternative payment methods.”

IS THIS LEGAL? So what’s the deal here legally? Is it necessary for retailers to charge their customers extra on card transactions or is it just another way to make money? Minimum spend requirements are generally regarded as unprofessional and many larger franchises decline to treat their customers in such a way. While retailers are legally allowed to impose the minimum purchase rule, it’s not reasonable at all. In some cases, businesses and retailers can take this process a step further, by saying that if a customer does not meet the minimum spend requirement that they can instead pay an extra 30-50 cents, so their payment can go ahead. Eftpos Australia CEO Bruce Mansfield told “Eftpos would prefer to see no minimum limits applied to eftpos cheque and savings transactions. It’s about convenience because having no limits makes it easier for consumers. However, merchants have the choice to set their own limits. It is a matter between them and their customers”.

MOVING FORWARD As recently as last year, MasterCard was campaigning to put an end to the minimum purchase restrictions. This is when their Zero Minimum campaign came into effect, that encouraged merchants to sign up and support the campaign. According to, the minimums are usually enforced to cover the fees that banks charge to process payments. 36  February/March 2018 | C&I |

These fees could include: • One-time fees such as terminal establishing fee, closure fee and on-site installation. • Ongoing fees like credit card transactions, which are usually a percentage of 0.5-3% of the transaction amount. • Merchant service fees on credit card transactions. • A standard fee per Eftpos transaction, which tends to be around 10c to 50c. However, these fees do not necessarily warrant such an excessive minimum spend. MasterCard market development and innovation head Garry Duursma told RetaiBiz online: “Australia leads the world in contactless payments with now 7 out of 10 MasterCard transactions being done in this way”. “This has changed consumer expectation and behaviour on card payments,” Mr Duursma said. “Consumers have now found that a card payment is faster and more convenient than alternative payment methods. “With this reality in their minds, consumers don’t understand why a retailer would restrict card payments for low value transactions. They make their frustration felt by voting with their feet.” Australian Retailers Association (ARA) executive director Russell Zimmerman told RetailBiz online it was important to maintain consumer and merchant choice across payment channels. C&I


Tart fit for a King – Long live the Custard Tart Safai’cse •

o • Ch

In France, this 600 year old delight was originally known a croustade, then a doucette, and a few other names since the Middle Ages. Henry IV loved it so much that it was one of the dishes prepared for his coronation banquet in 1399. Centuries later it’s marvellous to see old recipes still being used, because they’re just SO good. The small puff pastry case filled with a mixture of cream, milk, or broth with eggs, sugar or honey, and spices like nutmeg and vanilla. Simple. Ancient. With this long history, a modern custard tart has a lot to live up to and I should know because I’ve eaten more than my fair share over the years. Balfours Custard Tarts are as true to

Feb/ Mar 2017

Milky Bar—Wild Berry Crumble

Australia’s iconic white chocolate bar has had another delicious makeover. My favourite childhood treat is now even more mouth-wateringly delicious. Nestlé has combined the smooth creamy goodness of Milky Bar with the best bits of a Wild Berry Crumble. It is genius. This fruity offering is truly a childlike wonder of indulgent white chocolate with an adult twist of berry crumble in every mouthful. Nestlé has made them available in a medium bar and in a block to cater for all occasions. Nestlé continues to drive penetration in the white chocolate category, which is growing ahead of the total chocolate category 11.9 per cent vs. 2.1 per cent. 38  February/March 2018 | C&I |

the tarts of yore as King Henry would have wished, made simply from egg, milk, cream and vanilla with a dusting of nutmeg in a perfectly balanced, delicate pastry shell. Best eaten at room temperature or straight out of the fridge, these favoured treats are a perfect convenience purchase, on their own or with a freshly made coffee to go. Their wide appeal makes them ideally suited to all independents and major retailers in Petrol and Convenience, like BP, Caltex, United, IGA, Foodworks and Spar, just to name a few. To fill your fridge with Balfours Custards Tarts, go to or call them on 08 8368 5300.

Apr/ May 2017

The work of Alchemy Tim Tam and Gelato Messina, snack and dessert titans in Australia, united to create their own demi-titan love child: the Tim Tam Messina biscuit. These chocolate-covered wonders will bewitch you with their delicious, hypnotic and near-intoxicating flavours that will you send you spinning off into the realm of the mystical. Tim Tam approached Australia’s gelato masters to help them co-develop some new flavours. Set up in the Arnott’s test kitchen, Messina finally produced these flavours: Black Forest, Coconut and Lychee ,Choc Mint and Salted Caramel and Vanilla. If they’re not on your shelves then you are doing your customers a grave disservice. RRP $3.65, but what cost can you put on peace, happiness and understanding, in biscuit form?


Vodafone’s game changing 35 days

Jun/Jul 2017 Cobs call this new Aug/ Sep 2017 hit the ‘Chicago Mix’

Vodafone has extended its prepaid customer offer by an extra seven days. Shut the more 28 days! Vodafone has put the heat on its competition with its new 35-day prepaid plan offer. This will disrupt the whole market, with current and future Vodafone customers, the winners. Customers on the $40 and above combos have benefited from May ’17. Consumers moving up to the $40 combo will get customers double data as well as an extra week to use it, equalling more value and less wastage. Consumers will only have to recharge 10 times per year, the equivalent of two months free and a discount of 20 per cent. It’s a welcomed change to see a telecommunications company putting consumers first.

New 35 Day Prepaid Combos.

New 35 Day Prepaid Combos.

Available on $40 and above Talk and Data Combos.

Available on $40 and above Talk and Data Combos.

For assistance with sales, merchandising and product information, we have a national sales team offering regular service calls. Contact YES Distribution: t 1300 730 343 w e

Vodafone Power to you

For assistance with sales, merchandising and product information, we have a national sales team offering regular service calls. Contact YES Distribution: t 1300 730 343 w e

The nitty gritty: Not for commercial or resale purposes. All inclusions expire after 28 days or upon next recharge, whichever occurs first. Offer not transferable or redeemable for cash. Subject to change. Data for use in Australia only. Once data inclusion is used, you will need to purchase a data add-on or recharge to continue using data. 4G: 4G available with an active prepaid recharge and 4G device. 4G in selected areas in Australia. See MV01860 05.17

MV01860_300x235mm C&I mag 35 day combo May 17_FA.indd 1

11/05/2017 11:09 am

A Fruit Beverage Full of Love

Bundaberg Brewed Drinks has now introduced me to its new drink, the Bundaberg Tropical Mango. I have always loved mango and after four days of brewing, this refreshing summer beverage is sure to tantalise your taste buds. It’s ideal for the generation of millennials who are seeking new beverage experiences and flavours in a category that has seen only slight growth. Bundaberg’s unique range puts them in the perfect position to meet the needs of these young consumers. Bundaberg Tropical Mango has a bold taste profile and is expected to perform well nationally. Bundaberg has offered some interesting stats: 72% of consumers agree that fruity and unique flavours are the most appealing CSDs. This shows us there is more to come for the category. Well done Bundaberg, keep up the innovation! Contact your preferred Bundaberg Brewed Drinks distributor to order Bundaberg Tropical Mango today.

Vodafone Power to you

The nitty gritty: Not for commercial or resale purposes. All inclusions expire after 28 days or upon next recharge, whichever occurs first. Offer not transferable or redeemable for cash. Subject to change. Data for use in Australia only. Once data inclusion is used, you will need to purchase a data add-on or recharge to continue using data. 4G: 4G available with an active prepaid recharge and 4G device. 4G in selected areas in Australia. See MV01860 05.17

MV01860_300x235mm C&I mag 35 day combo May 17_FA.indd 1

11/05/2017 11:09 am

This popcorn from Cobs is named after the windy city Chicago, and it’s so good it will blow you away. The flavours are big and bold, combining sweet and buttery caramel with extra tasty cheese. Sounds weirdtastes delicious! To get the caramel popcorn tasting so good Cobs have used raw and brown sugar together with brown rice syrup and fresh butter. A splash of vanilla adds a sweet, creamy taste. Combine this with a generous seasoning of natural cheddar cheese that delivers that big cheese taste. Together, it’s the 50/50 mix that delivers 100 per cent on taste. More and more people are into combining flavours and folks will go crazy over this caramel ad cheddar combination. It’s popularity is due to the sweet and savoury combination. Adding to the list of good things, this popcorn is also gluten free. The Chicago Mix is available in a 175g bag, priced at $4.75(RRP)

Oct/ Nov 2017

Dec/Jan 2017-18

Yogurt on the go Farmers Union has harnessed the goodness of what they do best and simplified it to create the perfect on-the-go yogurt snack in a convenient, portable, easy to eat resealable pouch. A great healthy snack that is good for you, has no artificial colours or flavours, no artificial sweeteners and all the goodness of calcium. This is the snack yogurt lovers have been waiting for. Farmers Union are giving us four delicious flavours to be eaten anywhere. They come with a hint of honey, a hint of vanilla, a hint of coconut, or the original plain Greek yogurt. Enjoy them at your desk, on the way to work, on the way to the gym. And let’s not forget the kids! These are the healthy dairy snack option. With no artificial colours, flavours, or sweeteners there’s no need to feel guilty about the kids tucking into these delicious, wholesome yoghurt treats. These beauties have a purchase RRP between $2.25 and $2.50. To get them into your fridges and into the hands of your customers visit the Farmers Union’s website to find out more. February/March 2018 | C&I |  39


INDIE for Indies

In early December, Kollaras & Co (parent company of the Tobacco Imports Company), proudly launched the newest addition to their portfolio, INDIE. Commenting on the business, Kollaras & Co director Michael Kollaras said: “It is no secret that we are passionate about ensuring a level playing field for all. You’ve seen it with our tobacco brands, King Street and Brooklyn. We clearly see our role in the market as being a product solutions provider, to fill gaps for our customers to ensure they have their very own competitive offering”. Recognising a significant gap in the liquor trade for an independent exclusive 30 pack value block, Kollaras & Co launched INDIE in early December, just in time for the Christmas festive period. Having specialised in the FMCG industry for nearly 60 years, Kollaras & Co have been transparent about the importance of delivering a strategy on exclusive brands; and Kollaras & Co are clearly veterans, developing a 30-pack value block that independents can now call their own, hence the INDIE name. When Kollaras himself was asked about why the new product was important to the trade, he commented on the benefits of INDIE, saying: “As with all our brands; INDIE needed to not only be exclusive to our independents and deliver the right quality and price point for consumers – but also needed to deliver our retailers above industry standard margin, to ensure we are helping them bank more profit dollars”. The beer is said to adopt the classic Australian taste profile, being easy drinking, smooth and super crisp. Kollaras confidently stated: “INDIE is an important piece in our company’s desire to help deliver success and prosperity to independent retailers, who are, and remain such an important piece of our industry – and whose own success we depend on”.

Why the USB port in your car charges so agonizingly slow Mobile phones nowadays are demanding more and more charging power from their chargers. The problem with built-in automotive ports is that they don’t deliver enough juice to keep modern power-hungry phones, tablets, and other devices on and charging.  Most cars to-date only offered a very weak 0.5A output. While that’s enough to power your USB drive full of MP3s, it’s barely enough to trickle charge an iPhone and maintain the current battery level — if you’re using the phone for navigation, a notorious battery hog, it’s unlikely you’ll even charge it faster than it drains. The solution? Give up on the built-in USB ports and harness the power of your car’s 12v ports with Esonic’s new 3.1A Dual USB Car Charger with Smart IC. The new Esonic Dual USB Car Charger allows you to charge two USB devices quickly and simultaneously while you are on the road. 3.1A power is enough to support full speed charge to both iPad/ tablets and mobile device. Esonic focuses on quality for everyday consumers. This Dual USB Car Charger is available for only RRP $17.90. 40  February/March 2018 | C&I |


The Distributors Plan for the Future

2017 was a good year for The Distributors and this year, the group strives to continue the momentum in this fiercely competitive and challenging marketplace. Established in 1981, The Distributors specialise in confectionery, beverages, snacks, grocery and customer service. The Distributors are recognised as Australia’s leading independent national wholesaler distributor to petrol & convenience, corner stores, pharmacy, newsagents, schools and the route market. The Distributors were successful in winning a number of major awards in 2017 for the highest level of service in the industry. These awards comprise of AACS Distributor of the Year, Caltex Supply Chain Supplier of the Year, New Sunrise Distributor of the Year and UCB Stores Wholesaler/ Distributor of the Year. The Distributors general manager George Tsapoutas said: “It is with the utmost passion and commitment of our network of members, staff and support office team to our customers and supply partners that has allowed the receiving of these awards possible”. “We are very proud and thankful to our team,” he said. Operating 35 locally owned warehouses nationally, The Distributors provide national coverage with localised service. “This is our point of differentiation” Mr Tsapoutas said. “We work together nationally and have processes and procedures in place for supporting compliance and consistency across the group, yet our warehouses have a strong local community identity and deliver on the local needs and requirements of local customers.” The on-going challenge for The Distributors is to continue to improve on their service and offer to the market.

“The Distributors will continue to invest in the development of our service and offer to our existing customer base, as well as expanding across new categories and customers.” The Group is committed to exclusive products as a key strategy, providing their customers the opportunity to grow their business with different and unique brands and products. New exclusive lines are expected in the market in coming months. The Distributors look forward to strong category and business growth in 2018.



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Red Bull set to launch new The Coconut Edition in 2018 Launching nationally in March 2018, The Coconut Edition from Red Bull offers consumers the same functional benefits as Red Bull Energy Drink with a delicious new taste of coconut & berry twist. Red Bull Editions play an important role in driving both ongoing category engagement and incremental sales. Innovation has been identified as the biggest improvement opportunity within energy drinks1. Around 1 in 2 energy drink shoppers are seeking improvements within innovation1 as a way of overcoming boredom within the category. The Coconut Edition seeks to provide renewed engagement through a coconut flavour, currently a white space within the energy drinks category. Furthermore, NPD is a proven spend driver within the category2. Previous Editions launches from Red Bull®, have been effective in

42  February/March 2018 | C&I |

delivering incremental sales, through bringing both new consumers into the category and driving trial amongst existing consumers seeking new products. The launch of The Coconut Edition from Red Bull will be supported by strong direct and indirect sampling initiatives to drive trial and awareness; along with a digital focused awareness, in store POS. The Coconut Edition from Red Bull will be available in individual 250ml and in a take home 250ml 4-pack and will be priced in line with the 250ml (RRP $3.59 without CDS, $3.79 with CDS* ) and 250ml 4 Pack (RRP $11.19 without CDS, $11.95 with CDS*) Red Bull Energy Drink range. 1. Shopper Tracker – Convenience 2017 – Path to purchase 2. Shopper Tracker – Convenience 2017 – Category DNA, Shopper Panel – Red Bull NPD first 26 weeks of launch *Prices are recommended retail prices only and there is no obligation to comply with the recommendation.


Sanpellegrino’s two new flavours

Sanpellegrino has launched two new flavours to its Sparkling Fruit Beverage can range. Melograno e Arancia and Clementina are made with the juice of real fruit and were made available for our hot Australian summer. Melograno e Arancia (Pomegranate and Orange) combines sun-ripened Italian oranges with the fruit of the moment, Pomegranate − producing a tangy flavour with a hint of orange sweetness. Clementina (Clementine) is made with the juice of sun-ripened cementines, oranges and mandarins; this revitalising beverage has an abundance of intense, very fine Clementine aromas and a sweet-dry finish on the palate. These new 330ml SKUs are available in both the new, easy to manage 12-pack and the established 24-pack. Trade enquiries: Sanpellegrino S.p.A 1800 660 189; ask Sanpellegrino sales staff about bonus stock deals.

Balfours indulgent Choccy Donut A round, and doughy fried yeast donut ring creates the base for the Balfours Choccy Donut. Fried to light golden brown and topped with a rich medium dark chocolate fondant, this donut is the perfect indulgence and will make the ideal cabinet centre piece. With a smooth and shiny appearance the donut is a delicious and sweet offering for any convenience or independent store. This product can be stored frozen at or below -18°C and then thawed two hours before serving. For stocking information contact the following: • Emma Patten — National Sales Manager – 0427 065 022 • Mark Harding — Account Manager – 0458 035 152 • PFD customer service – 1300 275 733 • Balfour Customer Service Centre – 1300 300 032

Are your tobacco profits going up in smoke? Here’s your solution 2017 was tough for both retailers and the tobacco industry. The two government tax excises – only 6 months apart - made it incredibly difficult for retailers to sell cigarettes with healthy margins. It’s been announced there are more tax increases to come, which means the cost of tobacco products will continue the upward trend. In this climate, convenience retailers need to be proactive and take advantage of the growing popularity of the ‘sub-value range’. Predicted to be the next greenfield, a strong partner in this area is critical for retailers looking to profit from the biggest selling category in the convenience market in the future.  InterContinental Tobacco’s products are sold directly to retailers at a reliable and forecastable everyday low-price model. This means better margins and buying flexibility for retailers at a low cost, and premium taste for smokers. Created to be a solution to our commoditizing market, both products are made with superior Virginia tobacco leaf ensuring taste and quality is on par with well-known premium cigarettes. 100% legal and compliant, each production run is subject to stringent quality control processes whereby all products, including packaging, are checked and approved by solicitors. ICT offers their customers an ondemand online ordering system with a low minimum order requirement (any 5 assorted cartons), allowing new customers a low-risk method to start stocking their products right away. Delivery is free of charge, direct from their warehouse to stores and stock usually arrives within 24 hours. Family owned and operated, InterContinental Tobacco understands the day to day challenges of small businesses and is motivated to offer convenience store owners the opportunity to sell legal and compliant tobacco products that provide flexibility, high profit margins, and low risk. To start stocking Top Smoke and Wild Spirit Shift, visit​ or call 1300 859 962. February/March 2018 | C&I |  43


The Franke Hybrid/Modular A range is unique in its own class Professional, quality, and reliability can only mean Franke Coffee Systems but we are much more, leaders when it comes to innovation and concept development, we don’t simply sell coffee systems, we provide business solutions. Menu Interaction – Multimedia touch screens with HD quality video and sound revolutionize how customer interact making coffee, they truly become the barista. IQ Flow – Compensate change in grinder coarseness by keeping the coffee extraction constant from a sensory and analytical level. Opportunity to individually create drink profiles by maintaining constant pressure during extraction. FoamMaster – Unbeatable café foam quality – consistently, hot or cold milk and hot or cold foam combining various milk types and automatically dispenses syrup flavours, expanding menu offer and profitability. Telemetry - Monitoring product usage, waste reduction, trend tracking, technical updates and remote diagnostics, we tailor and personalize to meet your business needs. Visit or showrooms located in Sydney and Melbourne.

Indigenous Beverages Australia has a vision to seal the gap Indigenous Beverages Australia is owned and managed by a Gooreng Gooreng heritage family. It’s vision is to seal the gap between Indigenous and non-Indigenous Australians. Waddi Springs is the brand that has evolved from Indigenous Beverages Australia, and is an Indigenous majority owned and managed business. The brand offers a range of quality Natural Spring Water, beverages and specialty coffee products. “Our green promise means that when you purchase Waddi Springs products, you are helping your company and Australia to significantly reduce the carbon footprint effect. Our 100% BPA free, degradable recyclable bags means less power and no wastage on fuel for collection of empty bottles.” The bags used are made with renewable resources and are fully recyclable and degradable, thus delivering a much lower carbon footprint. The company proudly supports two non-profit organisations including Livin and Indigenous Community Volunteers. For more information on Indigenous Beverages Australia and Waddi Springs, call 1300 914 179 to make an enquiry or place an order, or email 44  February/March 2018 | C&I |






c o st

PS * 20 CU AY D R PE

s ex ST G



Rancilio Baby 9 professional capsule machine with Giancarlo premium coffee capsules. No equipment rental when you sign up to a 24 month capsule subscription.

ap sule 82c



FEATURES & BENEFITS Barista style coffee

No mess

Commercial group heads

No grinding

No tamping

No capital investment

Dedicated steam boiler

No plumbing

High margin product

Standard 10A power

24/7 support

Hot water

Hand made in Milan

Single and double espresso

CONTACT INFORMATION: • 1800 066 574 Terms & Conditions: *Sell 20 cups per day/5 cases per month/480 capsules with no rental on machine. Running costs exclude power, water and accessories. **AACS State of Indusrty Report on 2016 (release to channel in Sept 2017.) ‘Giancarlo’ is a registered trade mark



CHARLES WATSON Senior Adviser Workforce Guardian

Do the simple things right and everything else will fall into line.”


o kick off the employment relations aspects of your business for the year I thought a taster plate of issues you need to be aware of would be a good starter. If you get it wrong, don’t try sidestepping the problem Late last year the Fair Work Ombudsman commenced legal action in the Federal Circuit Court against a Caltex franchisee in Sydney for allegedly falsifying records of the wage rates it paid to overseas workers. Facing the Federal Circuit Court is Peter Dagher and his company Aulion Pty Ltd, who formerly operated the Caltex Five Dock service station in inner-western Sydney. The Fair Work Ombudsman investigated the Five Dock outlet as part of a proactive compliance activity involving audits of 15 Caltex service stations nationally. The Fair Work Ombudsman issued Aulion Pty Ltd with Notices to Produce and Mr Dagher and the company provided a range of documents, including contracts of employment time-and-wages records, pay slips and earnings summaries for six employees. Concerned that the documents provided did not accurately reflect the wage rates the company had paid to employees, earlier this year the Fair Work Ombudsman issued further Notices to Produce to one bank, a superannuation fund and Aulion’s accountant. The information contained in the documents obtained through the further Notices to Produce was inconsistent with information that had been provided by Mr Dagher and his company. The Fair Work Ombudsman alleges the reason for the inconsistency is that Mr Dagher and his company falsified documents and records, and unlawfully made use of them by providing them to the Fair Work Ombudsman. It is further alleged that Mr Dagher and his company also contravened laws requiring employers to issue employees with accurate pay slips within one day of pay day. The absence of accurate time-and-wages records prevented the Fair Work Ombudsman from completing a full audit to determine whether employees at Caltex Five Dock had been paid their full lawful entitlements. Mr Dagher faces maximum penalties of up to $3600 per contravention and Aulion Pty Ltd faces penalties of up to $18,000 per contravention. Given the Fair Work Amendment (Protecting Vulnerable Workers) Act 2017 came into effect, increasing the maximum penalties for conduct including deliberate exploitation of workers and false records, it is foolish to contemplate smoke and mirrors as a response. If you get something wrong, admit it, fix it and move on.


The second review of modern awards, which started 3 years ago, is still going. Of particular relevance to you will 46  February/March 2018 | C&I |

be the incoming changes to the General Retail Industry Award 2010. Numerous changes to the terms of the modern Award have been proposed, but little to nothing has been settled at the time of writing this item. Nonetheless, subscribers to this magazine should be aware that changes are likely to come into effect in 2018. These alterations will affect issues relating to hours of work, clarification of rostering requirements, clarifications on overtime and penalties, payment for working on public holidays to name a few. Wherever you receive your Award related information from, we recommend you regularly check-in to ensure if and when those changes go through so that you aren’t left behind.


In July last year I summarised the Fair Work Commissions casual conversion decision in the online edition of this subscription. That decision will alter the terms of the General Retail Industry Award 2010 so as to require employers to offer long term casual employees permanent roles. Six months on (at the time of writing this article anyway) and the ‘model clause’ continues to remain in a yet to be finalised state. Employers will be able to refuse a request to convert on ‘reasonable grounds’. Although that phrase has not been carved in stone, those grounds of refusal will include: • that permanency would require ‘significant adjustment’ to a casual employee’s hours of work and or other terms of employment; or • the employer can reasonably ‘foresee’ the position will no longer exist in the next 12 months. Therefore, any casual employee engaged to work on an occasional, non-systematic and or irregular basis will likely continue to be exempted from a right to convert.


Our advice to businesses of any size is pretty straightforward - “Do the simple things right and everything else will fall into line”. In a word it’s called ‘compliance’, however a ‘to do’ list can be kept simply to the following points: • Understand the basics of the relevant Award; • Appropriately classify employees under the relevant Award; • Payslips; • Keep appropriate personnel records; and • Yes, there is a workplace policy for that. We wish you success in 2018. C&I

Back by popular demand. Available from Thursday 1 March 2018!

PFD Item No: 30077 l Ctn 18

Contact details: Emma Patten National Sales Manager - 0427 065 022 Mark Harding Account Manager - 0458 035 152

PFD customer service - 1300 275 733 Balfour Customer Service Centre – 1300 300 032


BRETT BARCLAY Director - Convenience Measures Australia

We can learn a lot from overseas markets nearly 90% of all food to go products sold are hot food.”



n such a competitive landscape we are always trying to improve our offer, if you don’t you will be left behind. During 2017 I was fortunate to see a few overseas markets and some outstanding offers in which convenience stores are continuing to outpace the growth of supermarkets. Over the last few years the level of investment by most retailers has led to improvements in how people use and shop the channel. The truth is we had to, as movement would happen naturally with the increase in fuel efficient cars and having less of need to use the “servo”. As we migrate to true convenience through the instore offerings that are broader than cigarettes, drinks and lollies, we have had to create both a better environment and offer for shoppers. In visiting overseas markets the focus has been on the broadening food offers both in convenience and on the go outlets as well how creating an atmosphere or a place to stop has enhanced the offer. I believe that while I haven’t visited all convenience markets that we can learn by what WAWA, Sheetz and Rutter’s have done in Philadelphia as well as what SPAR, Applegreen and Topaz have achieved in Ireland; some outstanding offers that have been able to achieve significant growth as well as a real destination for convenience shoppers. While we can learn a lot from overseas markets there is certainly offers that have been developed in Australia. When we were looking at our Shopper Data (CMA Shopper Report) what was exciting was the NPS (Net Promoter Scores) on the various offers in the marketplace were very strong, showing high levels of customer satisfaction. This doesn’t mean that there are no opportunities for improvement however, we are doing certainly do some things well. When we look at what is

48  February/March 2018 | C&I |

working in Australia we often look at what is happening in the metropolitan cities however, we have seen some strong results come out of regional areas in Australia. The biggest difference has been the penetration of hot food and hot coffee which is almost reversed to the overall average. While metropolitan areas have seen significant improvement in the penetration of Hot Coffee it is Hot Food which has increased in its penetration to over 30% of all transactions in regional areas. A lot of this drive has come from the independent sector with APCO and UCB over indexing versus the average. A lot of it has come from differentiation of products to the standard offer and not necessarily health or ‘better for you’ products. In fact, when you look at the make up of the basket nearly 90% of all food to go products sold are hot food. These products can be anything from burgers, dim sims, hot chips and fried chicken wings— so while we have continued to drive ‘better for you’ health offerings in metro areas, it is the American style kitchen/fried food offer that is working in regional areas. What is happening however, is that hot coffee sales are not as strong in these areas as shoppers purchase their food with cold beverages instead. The key learning is that we need to continue to understand the store and region dynamic and ensure that you sell products that are relevant to the area rather than just take a holistic approach. This is where understanding the data is so important as many missed sales opportunities can happen by not understanding the area dynamics. Overall shoppers are happy with the convenience offer however, promotions and value remains the greatest challenge and we have seen some recent movement that has made the convenience landscape more competitive with other channels. C&I

Creating a better shopping experience in confectionery & snacks. Why not merchandise your entire category using our NEXTTM pusher trays? Not only will they increase the number of facings, leading to increased sales, they can also merchandise almost any product whether bagged, boxed or packeted!

Adding more impact and delivering increased sales! There are many ways to create differentiation and increase your category sales and one is simple and easy to do. Research has shown that by adding light to a category it increases sales by up to 20% and improves the shopper journey! Other opportunities include introducing bulk bins to the category, allowing customers to personalise their purchase by dispensing the exact amount they want to purchase, creating that all important point of difference.

HL Display Australia Pty Ltd. Suite 432, Level 4,14 Lexington Drive, Norwest Business Park, Bella Vista NSW 2153 Australia ABN: 59142957373 Phone: +61 2 8883 1157 Email: Web:

The better shopping experience



UCB supports over 1,200 independent retailers with strategies and tools that maximise their ability to make shopping on the go easy and convenient.”



s a retailer and retail program leader, UCB supports over 1,200 independent retailers with strategies and tools that maximise their ability to make shopping on the go easy and convenient. Apart from being convenient to shoppers, the C-Store channel provides a retail environment with scale, allowing brands to showcase innovation to shoppers, creating opportunities to test, trial and learn. We know the Australian FMCG industry is competitive, with a set of barriers to innovation that can make life challenging, its retail concentration and its challenges that most suppliers talk and think about. Dodging, weaving and innovating every day on how to deal with: • The dreaded margin squeeze • Large retailer aversion to risk • Private label category penetration • Speed to market and trade marketing and brand marketing linkages • Instore presentation, shelf location and share of space • Upfront and ongoing trade investment and the list goes on

50  February/March 2018 | C&I |

So, with what we know about the need to collectively support innovation and how the C-store channel provides many, many thousands of distribution points, relatively quickly – why would suppliers knowingly curtail excitement in their NPD, by repeatedly placing the prison bars of selective exclusivity on their products? Why then, with retailers being excluded from these upside opportunities, should C-Store retailers continue to support these supplier’s core ranges? This restrictive behaviour is creeping into the Australian C-Store marketplace. From a UCB perspective it’s just not good enough, while from an industry perspective it robs many fine retailers of the opportunity to participate in making brands and our channel stronger. It’s up to us all to earn shopper custom. At UCB we are managing for growth. We will partner even more closely with suppliers that understand the role Convenience plays and those that rally behind us (and the C-Store Industry) to place our retail members and their shoppers at the top of their thinking. It’s time to march to a different Drumstick beat. C&I An opinion piece from Darren Park, CEO United Convenience Buyers and AACS Board Member. Please follow me and UCB Stores on LinkedIn.


The Benzina Group can now offer you the Mobil Synergy Fuels Program With the Mobil Synergy Fuels Program and a competitive fuel card offer, let us help your site reach the highest of industry standards. The Benzina Group's capabilities stretch from site appraisal through to construction. Site Identification Design & Development Due Diligence Reports Project Management

Construction Refurbishment Buying & Leasing of sites - new or old FOR ENQUIRIES CONTACT JOE PHONE: +61 414 858 858 EMAIL: JOSEPH@THEBENZINAGROUP.COM WWW.THEBENZINAGROUP.COM


OFFICIAL GC2018 MERCHANDISE AVAILABLE FROM PACIFIC OPTICS Pacific Optics is a sub-licensee for the upcoming Gold Coast 2018 Commonwealth Games (GC2018) and is offering a wide range of merchandise and themed products


he new range available from Pacific Optics comprises SKUs across the key general-merchandise product segments of sunglasses, tech accessories, headphones, thongs and straw wide-brim hats. Pacific Optics General Manager Sales, Theo Foukkare said the option to collect special event items appeals to many consumers around the country, and retailers can tailor their offering to suit their store. “Initial sales results from January of these ranges have been strong. “In South East Queensland, retailers should be placing a major focus on a wide range across all key categories. For the remainder of Queensland retailers, they should be considering Borobi plush, keychains and collectibles, and Team Australia merchandise – which are the core general-merchandise bestsellers.” Despite some retailers already capitalising on the Team Australia merchandise for Australia Day and selling the Borobi plush as part of their offer in January, Mr Foukkare said he expects most retailers to be ready to sell the merchandise early to mid-February. This will then provide retailers with a large selling window of eight to ten weeks in the lead up to the Games. “Peak sales will definitely be in March and April, as awareness will be at its all-time high, and numbers of visitors to South East Queensland will be like nothing the region has ever seen before,” he said. Pacific Optics has also designed a range of prepacked displays for the counter or for off-location areas, “making the retailers’ only decision easy: which ranges do I want to offer my customers?” Mr Foukkare added. To range any of the GC2018 merchandise, please call Pacific Optics Customer Service on 1300 237 425. 52  February/March 2018 | C&I |


The Gold Coast 2018 Commonwealth Games represents a defining moment for the Gold Coast, Queensland, Australia and for the Commonwealth Games. From April 4-15, over 6,600 athletes and team officials from 70 nations and territories will converge on the Gold Coast to deliver 11 unforgettable days of world-class sporting competition. An extravaganza of 18 sports, including the first ever presentation of Beach Volleyball at a Commonwealth Games, and the largest integrated para-sport program ever, will be presented in the first large-scale multi-sport spectacle to be hosted in Australia for over a decade. The Games will be attended by over one million spectators with the competition broadcast to a cumulative audience of some 1.5 billion people. C&I

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PETROL NEWS ROUNDUP Managing your most expensive product Fuel is the most expensive product petrol stations offer, yet many fuel retailers fail to put a system in place to ensure that their investment is protected. Fuel is also one of the smallest profit margin products, so even small losses can have a big impact on the bottom line of the business. Managing your wet stock (fuel stock) not only makes good business sense, it is also a regulatory requirement in Australia to monitor UPSS (Underground Petroleum Storage Systems) for losses. It is illegal to allow or Dan Armes, ignore contamination resulting from leaking or Founder of ServoPro faulty UPSS. Loss monitoring has been mandatory for all new UPSS since 1st June 2008 and for old systems from 1st June 2009. Petroleum has toxic components such as toluene, xylene, benzene and ethylbenzene that can cause serious risks to humans and the ecosystem if they are released into the environment. Any undetected petroleum leak from a UPSS can pollute the surroundings at a petrol station including air, water, groundwater and soil. APAM Fuel Solutions specialise in wet stock management for petrol stations. APAM Fuel Solutions director, Pankaj Agarwal said petrol station operators are far better off having a preventive approach to wet stock management. “If a leak occurs from a UPSS, cleaning the contaminated surrounding groundwater and soil can cost anywhere from $100,000 to over a million dollars,” he said. “The UPSS owner can suffer economic losses from wastage of the fuel and may be liable for third-party damages for nearby contaminated sites. “It therefore, becomes business critical to involve a specialist in wet stock management to regularly monitor UPSS and detect any petroleum leaks. “Many site operators use inventory controls to record their site’s deliveries, dip readings and sales. Such inventory controls are not smart enough for volatile products and fail to detect fuel loss from evaporation and shrinkage. As a result, you could be facing fuel loss without any alarm bells. ‘Trained experts and vendors use inventory data and statistically analyse it to report the smallest leaks possible. This becomes essential at sensitive sites where a minor leak can impact the environment significantly.” The most common area where fuel losses are identified is in the sales process because of poor calibration of pump meters. While individual metre miscalibrations may appear to be small and insignificant, these can result in the loss of significant profits aggregating over time.If your pumps are over delivering, your customers will appreciate it, but it’s definitely not good for business! Wet stock monitoring reports can detect these miscalibrations and ensure this doesn’t happen. Some petrol retailers choose to reconcile their wet stock manually via a written book or spreadsheet. The dangers of manually reconciling your wet stock include human error, data entry errors, formula errors and miscalculations. In many cases these manual forms of reconciling wet stock are not only inaccurate but are also non compliant. While the fuel retailer might think they are making an effort to detect leaks, if the EPA was to audit the site they may not be deemed compliant. 54  February/March 2018 | C&I |

Mr Agarwal said: “The benefits of using an external company for SIRA and wet stock management includes, but is not limited to, delivery validation, identification of contaminants, dip data functionality, identification of pilferage and specialist advice if there is an issue found”. “Common issues that are found using our analysis and reporting include incorrect fuel deliveries, leaks from fuel pipelines and tanks, and the accuracy of dispensers and meters.” The EPA conducts random audits of service stations nationally. It is important that all fuel retailers are aware of their obligations around compliance. When you receive a delivery from your petroleum wholesaler how do you know if the correct amount of fuel has been delivered? There have been cases of theft while fuel is in transit. Third party wet stock monitoring will allow you to know in real time if you have received a short delivery. With small margins, petroleum retailers cannot afford to be receiving short deliveries. There was a case recently where a truck with a false floor and a fuel tank was parking over the fill point of underground fuel tanks and was pumping fuel out of the tanks. Without a system for reconciling fuel, the site operator would have never been unable to ever detect such theft. When an abnormality is found in a site’s wet stock reconciliation, it is important that the site operator gets specialist advice to find the problem as soon as possible. It may be as simple as having the dispensers calibrated or in a worst case scenario there is a leak in an underground tank. Either way the issues must be identified early and fixed immediately, as this can have a direct impact on the bottom line. There have been cases of the wrong type of fuel being delivered into a tank resulting in customers receiving the wrong type of fuel for their vehicle. If the site operator is using third party wet stock monitoring, this will be detected far quicker than if no reconciliation is being done. Reconciling your wet stock will also pick up if you have water entering your tanks either via a leak or build up of condensation. The extra volume of water will be picked up during the data analysis. Make sure that all staff members are trained adequately to avoid any data entry errors. The integrity of dipsticks should also be checked on a regular basis as warped or hard to read dipsticks can result in inaccurate data being entered resulting in incorrect analysis. A petrol tanker delivering the wet stock to the staton.

PETROL NEWS All service station operators should be submitting reliable data to a third party vendor of choice every day and be reviewing reporting data weekly. To be able to manage fuel inventory effectively and efficiently correct analysis and reporting needs to be easily accessible. For a small monthly fee it makes good business sense to use a specialist company for your wet stock management and SIRA compliance. No service station owner who wants to run an environmentally responsible, profitable business and have peace of mind can afford to ignore this.

“Consumers have saved nearly $3.5 million off their fuel bill using the 7-Eleven Fuel App, and redeemed more than 400,000 vouchers for free and discounted products, providing them with great value, and the chance to try new and exclusive products,” he said. “I’d like to thank our customers for providing us with the great feedback which has led to this award, and our entire team for their contribution to our success,” Mr Pettit concluded. Adrian Taylor (National Manager, Commercial, Canstar Blue) presents the 2018 Most Satisfied Customers – Service Stations award to 7-Eleven’s Head of Fuel, John Pettit Source: Supplied

7-Eleven recognised by Canstar award 7-Eleven Australia has won Canstar’s 2018 Most Satisfied Customers – Service Station award. The award was based on the results of over 2000 fuel consumers who provided feedback on their overall customer satisfaction. It also took into account feedback regarding their score out of five for store appearance and cleanliness, service, petrol price, convenience, facilities and product range. 7-Eleven scored 5 stars on five out of seven measures, including on overall customer satisfaction. 7-Eleven’s Head of Fuel, John Pettit said the team are proud to be recognised for their hard work. “This award recognises the combined efforts of our support office and store-based teams, putting customers at the heart of all we do and working together to maintain high standards and a great in-store experience,” he said. Mr Pettit said the company’s Fuel App also had a strong influence on the win. “We’ve had 850,000 customer downloads since the Fuel App’s launch nearly two years ago, including 50,000 downloads in the last two weeks,” he said.



Sick and tired of getting ripped off with people stealing your fuel? Join the community fighting back!

Scancam with a joint task force of proactive fuel retailers have prevented over $1million dollars of fuel theft to date.

February/March 2018 | C&I |  55

PETROL NEWS The court was shown evidence regarding the two employees allegedly underpaid, allowing the court to rule that the franchisee had engaged in fraudulent behaviour, and as a result caused damage to 7-Eleven’s reputation. The franchisee agreement allowed the franchisor to terminate the agreement on the grounds of fraudulent behaviour in connection with the business. Under the cash-back scheme, employees were found to have been underpaid effectively below the minimum wage. The franchisee denied the claims and argued that they had been unlawfully terminated however the court found his evidence inadequate. According to a Workplace Info report the franchisee was allegedly aggressive in his responses and his answers were evasive. Despite both employee witnesses having some difficulty in explaining how they paid the money back to their employer, the court noted their issues with the English language and was satisfied that this was cause for the lack of clarity. The court found the agreement had been lawfully terminated. Electric vehicles are already being driven in high numbers all over the world

Joyce rejects petrol-car ban Federal Transport Minister, Barnaby Joyce, has rejected the idea of following in the footsteps of overseas countries that have banned the sales of new petrol-run cars, in favour of electric vehicles. Despite Mr Joyce’s objections, Environment and Energy Minister Josh Frydenberg has strongly supported the prospect of electric vehicles. In an opinion piece written for the Sydney Morning Herald, Mr Frydenberg said: “Australian surveys show that about half the people in the market for a new car are prepared to consider purchasing an electric vehicle with many investigating it”. Mr Frydenberg said there were currently two million electric vehicles on the road around the world, but that Australia only owned 4000 of them. A spokeswoman for Minister Barnaby Joyce said his government had “no plan to ban the sale of new petrol and diesel cars ... Australia’s transport policies are modelled on Australia’s needs”.

Supreme Court rules on 7-Eleven franchisee termination The NSW Supreme Court ruled in 7-Eleven’s favour that its actions of terminating a franchisee were a justified response to underpayments. 7-Eleven had terminated an agreement with a franchisee after it came to light that they were seeking ‘cash-back payments’ from their employees. Two employees of the terminated franchisee were allegedly underpaid by the cash-back payments which saw the employees paid the correct award wages but then also required them to return part of those wages back to the franchisee. The Supreme Court ruled in favour of 7-Eleven’s franchise agreement.

56  February/March 2018 | C&I |

Legal action sparked over alleged false Caltex franchisee wage records

The Fair Work Ombudsman has begun to take legal action against a Caltex franchisee in Sydney after an audit attempt was halted by falsified wage records. Following concerns about underpayments and an audit of 25 Caltex service stations, the Ombudsman investigated the outlets in 2017. A statement released by Fair Work said: “the Fair Work Ombudsman issued Abdul Wahid and Sons Pty Ltd with a Notice to Produce and Mr Rana and the company provided timesheets, payroll records and pay slips purporting to show the hours worked and wage rates for 15 employees at the Dural and Ermington service stations”. It is alleged that the provided documentation, documenting time and wage records could not be correct because the company had been knowingly using a software system that produced false records. It is also alleged that both parties knowingly provided Fair Work with the falsified records. Fair Work said: “The absence of accurate time-and-wages records prevented the Fair Work Ombudsman from completing a full audit to determine whether employees at the Dural and Ermington outlets had been paid their full lawful entitlements”. “For the false records matters, Mr Rana faces maximum penalties of up to $3600 per contravention and Abdul Wahid and Sons Pty Ltd faces penalties of up to $18,000 per contravention. For the pay slips matter, maximum penalties of up to $5400 per contravention for Mr Rana and $27,000 per contravention for the company apply,” it said. Caltex responded to the Fair Work Ombudsman saying the following: “Caltex has been and continues to work with the Fair Work Ombudsman, who has been investigating some Caltex-franchised sites. The Ombudsman has an important role to play in ensuring compliance with Australian

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PETROL NEWS workplace laws, and has powers to take action where they find noncompliance with those laws. “We have taken the actions we are permitted by the relevant Codes and under our agreements with franchisees. We have established an audit process, an independently run whistleblower hotline, and an assistance fund for franchisee employees who have been affected by the conduct of certain of our franchisees. We have also improved screening and acceptance processes for people entering into a franchise agreement with us,” the company continued. “The operator named by The Fair Work Ombudsman was exited from the Caltex network in 2017 as part of the Caltex audit process.” A hearing regarding the allegations was scheduled in Sydney’s Federal Circuit Court in Sydney for February 7th 2018.

“All the while, the people who work in the 24/7 convenience industry are feeling less and less safe in going to work. It’s unacceptable and it must stop. “From the AACS perspective, our position is clear: we will be encouraging our many members, and the thousands of employees in the convenience industry in Victoria, to pressure their local members and use their vote to reinforce a zero-tolerance approach to crime. “We are at the point where the only stance on crime left to take is a tough one. Small business demands it and so do members of the community,” Mr Rogut said.

Petrol station owner dangerously douses driveway Petrol is a highly flammable substance

AACS CEO Jeff Rogut calls for public action to protect businesses and lives The CEO of the AACS, Jeff Rogut of the Australasian Association of Convenience Stores (AACS) has publically called on the Victorian state government to act, to protect small businesses and lives. Following the highly publicised crime crisis that has hit Victoria recently, Mr Rogut will soon host a meeting of the Australian Businesses Against Crime forum with the view of taking tougher action against criminals. Mr Rogut said: “Each week we read reports of criminal gangs perpetuating violent crimes and robberies, with service stations and convenience stores in particular being targeted by these criminals. What we don’t read about are any real deterrents to these crimes”. “How many violent incidents is it going to take until Victorians see the judiciary hand out sentences appropriate to the trauma inflicted by these criminals and in line with community expectations? Service station robberies are happening almost every day. Surely as a state we can’t accept this as the new norm,” he said. “We have seen the Opposition declare that, if elected, it will make petrol theft a crime, but we’ve seen or heard nothing from the Government along these lines. Any genuine attempt to crack down on crime should include this obvious and necessary move. “Similarly, we’ve seen the size and scope of the illicit tobacco ring reported in detail, yet no coordinated strategy to crack down on these crime gangs has been devised.

Security being installed to give extra protection for businesses

58  February/March 2018 | C&I |

Television news program A Current Affair has released CCTV footage, showing a a regional Victorian petrol station owner allegedly dousing his station and forecourt with unleaded fuel. In the clip obtained and aired by the news program, the petrol station owner Ron Carrison can be seen pouring petrol from the pump onto his the driveways of his busy highway station. The footage also shows A Current Affair reporter Martin King confronting the owner regarding his dangerous behaviour. He is said to clean the driveways with petrol as it is the easiest and most efficient way to remove diesel stains. Mr Carrison denied the accusations before changing his mind, and taking Mr King to the driveway where he sprayed petrol on the ground and wiped it up with a cloth. Jack Trevaskis, a teenage employee of Mr Carrison spoke to A Current Affair regarding the issue saying: “You do it or you don’t have a job”. Mr Trevaskis was one of three teenagers interviewed by the program who had worked for Mr Carrison and been forced to clean the driveways with petrol to remove diesel stains. When Mr King asked Mr Carrison if it was dangerous what he was going, to which Mr Carrison replied ‘no’. Glen Trevaskis, Jack’s father is a former police officer and also worked in the bottle shop next to the petrol station. He said it was a disaster waiting to happen. “I just can’t believe it hasn’t happened yet. It’s unbelievable,” he said. The Environmental Protection Agency (EPA) told A Current Affair it had previously warned Mr Carrison about his dangerous behaviour but that it would now re-open its investigation. An EPA spokesman told A Current Affair: “EPA has previously advised the operator of his obligations. In light of this new vision EPA will be revisiting the matter”.


Make fuel theft history

Fuel theft is a crime! It’s no different to shoplifting, no different to different to burglary. So why as an industry do we continue to suffer in silence, we do nothing to address this age old problem and yet we continue to complain how the loses impact our already low margins. Different states have different views as to if fuel theft is a civil or a criminal issue, and whilst retailers have argued both side of the coin for the longest period, the problem hasn’t

gone away in fact while we have been debating it’s been increasing (AACS 2015 Estimated fuel losses to be in excess of $55 million, our data would suggest this figure could be up to $100 million in 2017). We don’t see or care about the distinction, theft is theft! So we are reinforcing the vision that founded our company n 2014 ‘to make all forms of fuel theft history’. To date we’ve been making great strides, we now working with a core group of proactive fuel retailers across Australia and are proud to have prevented over $1 million of fuel theft to date. So if you’re sick and tired to people of stealing your fuel, being seen as a soft target, and a magnet for repeat offenders, reach out to us today. Our mission is as valid now as it was when we founded the business. We need your help to make fuel theft history. We have the technology, the processes and the systems to ensure that not only do your losses decrease dramatically, but that repeat offender that has been stealing from you for months, even years, is never able to again. But we can’t do it without you, join the anti-fuel theft community today, and help stop an issue which has plagued our industry for so long.

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Visit or call 1800 818 354 for more information  59 February/March 2018 | C&I |

Petroleum equipment and services

Action Installation & Services


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: Steve Crispin Brown Phone: 1300 785 425 Email: Web:

Phone: 1300 652 003 Email: Web:


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 designs, develops and supplies leading fuel dispensing systems, making fuel systems simpler, smarter, safe and more cost effective. Gallagher’s innovative PULSE fuel dispenser range combines advanced technologies with stringent Vapour Recovery Compliance in an intelligently designed modular pump to meet your needs. Gallagher offers reliable products, remote monitoring and product serviceability to solve the daily challenges of forecourt owners. Designed with current and future needs in mind and employing innovative electronics, corrosion proof metal work, Gallagher utilises Tatsuno’s world leading accurate metering systems. Experts in Vapour Recovery, Gallagher has achieved world-first TUV certification for a centralised vacuum VR system and is the only company offering both Centre and In-Pump systems. With a true understanding of the Australasian market, Gallagher is on the spot and working collaboratively to create the right solution for each customer, be it a customised ‘one off’ tailored product or a full production run.

Phone: 1300 305 600 Email: 60  February/March 2018 | C&I |

Contact: Derek Hjelm, Business Development Manager Australia Phone: 0424 164 814 Email: Web:


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 or Ph: 03 9708 2276 to find out how you can start saving today.

10 Sonia Street, Carrum Downs, VIC 3201 Phone: (03) 9708 2276 Fax: (03) 9708 2279 Hours: Mon - Fri: 9am - 5pm http://www.fl Advertisement -13- C&I Dec-Jan 2018.pdf 1 14/11/2017

4:37:11 PM

Gascorp Pty Ltd – Budget Petrol 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.

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To be listed here, please contact Safa de Valois on 0405 517 115 or email February/March 2018 | C&I |



North Cross Australia Pty Ltd North Cross Australia Pty Ltd is a multi-disciplinary firm that has offered a wide range of services to the Service Station Industry since 1990. Our body of work is impressive and ranges from design, construction, civil, environmental, specialist petroleum services, demolition and local & statutory authority compliance. We have worked with property owners and site operators for: • Underground Petroleum Storage System (UPSS) compliances. • Fuel System Modifications. • Design, Installation and Commissioning of new Fuel Systems. • De-commissioning and Demolition (Unrestricted Licence) of existing fuel systems (incl Tank Removal or Abandonment). • Asbestos Removal. • General Construction Work. • Civil Work. • Environmental and Remedial. North Cross Australia Pty Ltd ABN 30 130 834 329 Unit 14, 54 – 60 Links Rd, St Marys NSW 2760 Phone: (02) 9673 4004 Fax: (02) 9623 5823 Mobile: Norman Badaoui 0401 564 566 Email: Web:

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

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: • Fill Adaptors and Caps, Dip Cap Assemblies • Upflow Vents, Pressure Vacuum Vents • Dip and Fill Product Markers • Vapour 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 • Aluminium and Composite Manway Covers • Aboveground Tank Equipment For a complete product range please visit Shipman King’s web site.

Contact: Nigel Howlett Phone: (03) 9459 9900 Email: Web:

62  February/March 2018 | C&I |

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

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C&I Retailing Magazine February-March 2018  

C&I Retailing Magazine and C&I Expo became a division of the Intermedia Group in July 2014. Australia’s impulse and convenience market inclu...

C&I Retailing Magazine February-March 2018  

C&I Retailing Magazine and C&I Expo became a division of the Intermedia Group in July 2014. Australia’s impulse and convenience market inclu...