C&I Retailing Magazine April-May 2021

APRIL/MAY 2021

AUSTRALIA’S NO. 1 * DRY DOG FOOD now available in a convenient 1.5kg

*Source: Nielsen Scan Track Grocery MAT 28/02/2021

DRIVE PENETRATION AND INCREASE SHOPPER BASKET

63%

OF CONVENIENCE CHANNEL SHOPPERS OWN EITHER A DOG OR CAT

42% 42% of shopping missions are a top up shop or impulse buy

45% of shoppers had less than a week’s stock of pet food in the house

95% of those are forced to spend their Pet Care budget elsewhere as their local ‘won’t have my pet products’

NEW

1.5kg

Opportunity to expand the pet category through a

NEW convenient size

Source: 2017 Kantar Shopper study

ITEM CODE

METCASH CODE

12472898

216758

PRODUCT DESCRIPTION SUPERCOAT Adult Dog Beef

SIZE

BARCODE

RRP

1.5kg

9300605142466

$9.99

Bring out their best

CONTENTS

EDITORIAL

April/May 2021

10

Expecting the unexpected 56 W 06 FACE TIME

Ryan Price, Channel Manager, Pacific Optics

10 STORE REVIEW

Enhance Corrimal is a step above with customer satisfaction

14 OUTBACK SPECIAL

The final instalment in our two-part series by travelling remote store manager Mark McGirr

18 PLANT BASED FOOD

Demand for plant based food has reached a tipping point in Australia

22 CHOCOLATE BARS

Chocolate remains one of the most resilient categories in P&C

26 FLAVOURED MILK

Why flavoured milk is a critical category to get right

30 PRODUCT RANGING

elcome to the April/May issue of C&I Retailing Magazine.

If the last 12 months have taught us anything, it is to expect the unexpected and to remain flexible and agile.

While life in Australia has largely returned to normal, the COVID pandemic is still presenting challenges all over the world, and as we go to press Greater Brisbane has been sent back into a snap three-day lockdown, with face mask wearing once again mandatory across Queensland.

But we are all old hands at this now and previous experience has taught us how to swiftly respond, as suppliers, supermarkets, and convenience stores work hard to keep Queenslanders well stocked with the groceries they require.

It’s a reminder of just how quickly a city can be sent back into lockdown and how we need to remain agile, flexible, and well prepared for any challenges that come our way. With vaccines being rolled out as we speak, the end is in sight and together we will get through this.

In this issue, we take a look at three in demand categories within the petrol and convenience channels, including chocolate bars, flavoured milk, and plant based food. We’ve got some great advice on how to boost sales within these categories beginning on page 18.

For our Face Time feature, we get to know Ryan Price, Channel Manager at Pacific Optics, who you can read all about on page 6. And for our Store Review, we head down to the Illawarra region and look inside the brand new Enhance Corrimal, which features Enhance’s new back court retail offering, Fletch & Co. The Fletch & Co concept has been designed as a step above your average service station and the team’s primary goal is to provide truly exceptional customer service to its local community.

On page 54, we speak to the winner of our recent C&I reader survey. Praveen Sanjeeva, store owner at Metro Marsden in Brisbane was thrilled to win a brand-new Apple Watch Series 6 valued at $599. Congratulations to Praveen and thank you to all who participated in the survey.

To our readers, stay safe, look after each other, and we hope you enjoy reading this issue of C&I Retailing Magazine.

Cheers, Deb Jackson

We bring you all of the latest new product launches

46 OPINION

Stephen Wilson, Category & Insights Manager, Strikeforce

48 INDUSTRY NEWS

Brett Barclay, Bega, Metro Marsden, AACS Women in Convenience, The Distributors

58 PETROL NEWS

Dan Armes and the latest updates

4 April/May 2021 | C&I | www.c-store.com.au

Safa de Valois

James Wells

Keith Berg

Ben Curtis

PRIME TIME

All new Allen's and Chokito bite-sized treats

KitKat gets inspired by ice cream

Allen’s Mini White Choc Raspberries, Allen’s Mini Chocolate Black Cats and Chokito Bites have been available since January and are already causing a stir with consumers.

The Allen’s Mini White Choc Raspberries are inspired by the tasting notes of creamy Milkybar with a flavour combination of white choc covered raspberry-flavoured lollies. Allen’s Mini Chocolate Black Cats are aniseed-flavoured Black Cat lollies covered in a smooth milk chocolate coat. Both have no artificial colours or flavours and are 100 per cent gluten free.

The new Chokito Bites feature a blend of chewy caramel fudge and crunchy rice crispies encased in smooth milk chocolate.

Nestlé Head of Marketing – Confectionery Joyce Tan said: “Everyone loves the bite-sized twist on our classic lollies, especially when they’re coated in chocolate.”

KitKat Caramel Crisp and Mint Choc Chip 170g

KitKat has expanded on the KitKat Caramel Crisp 65g share bar and KitKat Mint Choc Chip 45g medium bar, with both flavour variants now available in a 170g block.

As a result of the consumer shift towards sharing formats, blocks are experiencing rapid growth in the petrol and convenience channel, growing 9.6 per cent ahead of the rest of the chocolate category, which is growing at 1.8 per cent*.

Nestlé has been a key contributor to the segment performance as its portfolio grows 38.4 per cent and KitKat blocks accelerating at 48.3 per cent*. Performance is being driven by growth in core lines as well as exciting innovation, such as the ice cream inspired KitKat formats, which have proven to delight customers. *Source: AC Nielsen AUS Convenience MAT to 14/02/21

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

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

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

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

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

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

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

KitKat has reinvented two much loved ice cream flavours with its KitKat Caramel Crisp and Mint Choc Chip bars.

Caramel Crisp features crisp wafer fingers covered in golden caramel flavoured white choc, topped with French caramel flakes, all on a creamy white choc base in a 65g share bar. Mint Choc Chip features crisp wafer fingers covered in creamy mint choc, topped with Swiss cocoa crisps, all on a smooth milk chocolate base available in a 45g medium bar.

KitKat share bars are performing ahead of the category, growing 10.9 per cent while the segment declines 1.9 per cent*.

Driven by strength in innovation and positive performance on the core range, KitKat remains the leading chocolate bar brand in Australian convenience, growing 2.5 per cent*. *Source: AC Nielsen AUS Convenience YTD 14/02/21

The Distributors welcomes Water Please to portfolio

Did you know in Australia more than 373 million plastic water bottles end up in landfill and waterways each year instead of being recycled correctly?

Having said that, when it comes to aluminium Aussies are champion recyclers, of the three billion canned drinks consumed more than 2.1 billion (71 per cent) of cans are recycled.

Keen to work on a solution, The Distributors is pleased to welcome 450ml unique aluminium bottle Water Please to the family.

The sleek aluminium bottle contains 450ml of pure natural Australian spring water, Australian made and Australian owned, with 24 bottles per case.

Water Please aluminium bottles can be purchased from your local member of The Distributors.

Visit www.the-distributors.com.au or call 1800 989 022 to find your local warehouse.

Editor at Large: Keith Berg

Graphic Designer: Alyssa Coundouris

Managing Editor: Deb Jackson

Contributor: Claire Hibbit Mark McGirr

National Sales Manager: Ben Curtis

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 © 2021 - C&I Media Pty Ltd.

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

INFORMATION PARTNERS:

April/May 2021 | C&I | www.c-store.com.au 5

FACE TIME

Ryan Price with daughters (L-R) Laine, Makaila, and Arielle

RIDING THE PERFECT WAVE Love for his family, a passion for building relationships, and an eternal search for the perfect wave, are at the core of Ryan Price, Channel Manager, Pacific Optics.

I’ve learnt everyone can win with the right attitude.”

– Ryan Price

I

was born in a sleepy little town on the mid-north coast of New South Wales called Bellingen. It is a beautiful town that’s about halfway between Sydney and Brisbane and is a great place to get in touch with nature.

I am the youngest of four boys with less than seven years between myself and my older brothers Daniel, Lloyd and Joel.

Our parents separated when we were young and my two middle brothers (Lloyd and Joel) went to live with my father, so I would only see them during the school holidays.

My eldest brother, Daniel and I lived with our mum and she is an absolute legend. She worked hard making school lunches, getting us dressed, doing the washing, cooking dinner, and reading us stories every night. I loved spending time with mum and would proudly say that I was a mummy’s boy!

Having three brothers we were always very competitive, and we turned just about everything into a contest. Being the youngest I had to get a bit creative and implement different strategies to beat my stronger, bigger siblings. Whenever we all caught up as a family over the holidays, the teams for any competition would be Daniel and I against Lloyd and Joel.

6 April/May 2021 | C&I | www.c-store.com.au

Daniel and I moved with mum to a coastal village near Coffs Harbour called Sawtell. I think growing up there really shaped me into the man I am today. I loved everything active from surfing to rugby, soccer and running. I was full of energy and excitement and could never just sit still – and I still can’t today.

I played rugby league for the majority of my childhood for a team called the Sawtell Panthers and we were undefeated from the under sixes right through to the under 16s.

Life in Sawtell was very simple. I remember as an 11-year-old I would wake up at 4am and ride to the beach with my mates for an early morning surf before school – life just flowed back then.

Nowadays I don’t think we could get an 11-year-old out of bed that early, nor would we allow them out by themselves at that time.

My first job growing up was working at Dreamworld as a ride attendant. It was a dream job for a school student because I’d just work during the school holidays and occasionally on weekends. I loved being able to greet guests and see their excitement both before and after they entered the rides, it made me feel fantastic. I’ve always been somewhat of a people pleaser and that definitely hasn’t changed over the years. I’m always trying to get the best out of every situation.

FACE TIME

L-R: Safa de Valois (C&I), Daniel King (Mrs Mac's), Ryan Price (Pacific Optics)

I’ve been very fortunate and have spent almost a quarter of my life living overseas. It all started when I was 19 and I was invited to join one of the world’s top inventors to travel the United States selling agricultural (farming) products at trade shows and conferences. This was my first overseas trip and after about 13 months of travelling throughout the US and Alaska, I had definitely picked up the travel bug (not COVID-19).

From here I decided to make my way to the United Kingdom.

My parents are both English, so I was able to apply for a British passport, and I was set. I got myself settled and working in London and then spent the next six years travelling around Europe whenever I had spare time.

Since moving back to Australia, my holiday destinations have been much closer to home. Places like Asia and the Pacific have become our go-to family holiday destinations.

I’m grateful to say that after having a house of brothers growing up, my life has changed dramatically. My family now consists of my beautiful wife Allanah and our three little girls, Makaila, Laine, and Arielle. Having three daughters and a lovely wife, the house dynamic is very different. I’ve learnt patience and how to live with a messy bathroom, although one positive is that there are always leftovers from dinner.

Ryan Price with his mentor, newly appointed AACS CEO, Theo Foukkare

These days I dedicate my energy to Pacific Optics as the Channel Manager covering our key channels of petrol and convenience, grocery, gifting, newsagents, facilities management (mining and hospitals), automotive, and distributors. Our team consists of four national account managers who look after the relationship with our valued retail partners.

Understanding that all customers are different is important to the success of any relationship, and my goal is to have complete diversification in how we interact with each trade partner.

Alongside myself, the field sales team consists of 45 reps led by our national sales manager, Harry Phillipou. Harry and I work alongside each other to execute and achieve the success Pacific Optics has always been known for.

I would love to perfect the art of a work/ life balance and I have already started implementing key strategies to be more present...”

– Ryan Price

I value connections as the most important to my successes, from having the recently appointed AACS CEO Theo Foukkare as my mentor for the last six years, to the many customer relationships I have built over my 20-year career. When you build a meaningful connection with someone, it allows you to work together for mutual benefit. One of the key highlights for me is that I’ve learnt everyone can win with the right attitude. C&I

We live on the southern end of the Gold Coast, home to some of the best surf breaks in the world. We live with our Labradorcross, Harley – it was the closest to naming the dog Harley Davidson that the wife said I could get! My family are my greatest joy. They put up with me every day (rain, hail, or sunshine) and it is a blessing to have them doing life with me.

I would love to perfect the art of a work/life balance and I have already started implementing key strategies to be more present, and to reflect on the positives while making the most of every moment.

From my very first job working at Dreamworld right through to my current role at Pacific Optics, the way I look at partnerships has been shaped. I have always enjoyed the challenge of getting customers to put their trust in my advice in order to keep them safe and deliver on expectations. Whether that is finishing a ride with a smile on their face or helping our partners to achieve market leading category growth, throughout my whole career this has been what has kept me getting up every morning.

Ryan Price with wife Allanah and daughters Makaila, Laine, Arielle, and dog Harley (Davidson) April/May 2021 | C&I | www.c-store.com.au 7

C&I is heading back to Melbourne in 2021, bringing retailers and suppliers together for two big days of business at the premier Australian convenience and impulse event.

The retailer audience consists of owners and operators of convenience stores, service stations, independent supermarkets, mini marts, corner stores, newsagents, and food service stores that have a convenience offer. Suppliers and wholesalers are also more than welcome. C&I Expo is a trade only event and admission to the expo is free.

Retailers and suppliers from all banners and brands are welcome to attend any or all of the functions over these two days where the focus will be on innovation and best practice within the convenience and impulse industry.

Visitors will be treated to an impressive line-up of exceptional presentations at the C&I Industry Symposium. When the expo doors open, visitors will experience first-hand the latest in convenience products, services and merchandising.

Total attendance at the expo is expected to exceed 2,000, representing over 8,000 retail outlets and including numerous suppliers.

“I love the Symposium, I love the C&I show. I love how our whole industry gets together for one event…Our whole company is here so we can network with people at all different levels.”

United Convenience Buyers

‘‘For us it’s meeting a lot of new people, it’s opening up a lot of new doors which we hadn’t had before.”

Chobani

THE Calendar Wednesday 11th August 2021 10:00am – 12:00pm C&I Industry Symposium 12.00pm – 5.00pm

C&I Expo Day 1

4.30pm – 6.00pm

Networking Drinks

Thursday 12th August 2021 9.00am – 11.00am

C&I Industry Symposium

11.00am – 4.00pm

C&I Expo Day 2

“Without this show you need people on the road going out and seeing them and that’s just a costly exercise.”

Olympian Products & Distribution

THE Venue Melbourne Convention and Exhibition Centre Set on the banks of the iconic Yarra River, Melbourne Convention and Exhibition Centre (MCEC) is just a 20-minute drive from Melbourne airport and a short stroll to the city centre. The internationally renowned MCEC is a world-class venue offering premium exhibition facilities, a central location and is close to public transport and accommodation.

C&I INDUSTRY Symposium At C&I 2019 the Industry Symposium was introduced as the opening event of the expo. It was a great success, with extra seats needed for the delegates eager to listen and learn from the industry’s best.

“The Symposium was awesome, and you could see it in the room.

The room just loved it. I’ve spoken to a few people since coming out and everyone loved it and thought it was a great addition to the show.”

“It’s great to hear from people who have real experience in all of those different markets. That way we can help our retailers go out and do better business.” United Convenience Buyers

98.5%

*

The cocktail function has become one of the highlights of the expo program. An exceptional opportunity for the industry to network with exhibitors, distributors and visitors over a few relaxed drinks. The event has brought an added opportunity to become a sponsor at C&I 2021.

78%

After 28 years of successful Expos in Australia, the C&I NZ Expo made its debut in Auckland in September 2019. C&I NZ 2019 was a huge success with incredible support and enthusiasm for the show from the NZ industry.

“

We were absolutely blown away by the industry support for the inaugural C&I Expo NZ. The debut expo featured 70 exhibitors, huge foot traffic and over 220 industry professionals attended the Industry Symposium. We are looking forward to bringing the Expo back to Auckland in 2021 even bigger and better!

– Safa de Valois, C&I Commercial Director

OF ATTENDEES WOULD RECOMMEND THE C&I INDUSTRY SYMPOSIUM TO OTHERS

Networking DRINKS

*

THE FUTURE IS Bright FOR C&I

OF ATTENDEES GAVE A POSITIVE RATING OF C&I EXPO’S NETWORKING OPPORTUNITIES

Why EXHIBIT? C&I 2021 is the premier event for the Australian Convenience channels, open to all banners and brands.

• Professionally staged and managed large-scale events focused on convenience and impulse retailing • Access to independent operators who may not be receiving adequate representation • Access to the major corporate and independent chains • Industry-wide advertising in the lead up to the event • Limited demands on staff time and all administration taken care of online • Large selection of stand configurations • Broad-based industry support for the event

What’s in it FOR VISITORS? • A single national event compressed into two days, showcasing and recognising best industry practice and cutting-edge innovation • Premium industry education • Convenient hours, mid-week timing at a central location, close to public transport and accommodation • A chance to see, touch, taste and smell the latest in convenience products and trends first-hand inside one large exhibition hall • Opportunity to network with major retailers and suppliers at the Networking Drinks • C&I 2021 is Australia’s only industry-based event that is open to retailers and suppliers across all banners and brands. The general public is not admitted.

”

We’ve had very good leads come out of the show and those leads have converted.

We are more than happy with the outcome from the show. Orford Refrigeration

It’s a great chance to see new innovation in the market, new products, see what’s happening and what our competitors are doing.

Vodafone Prepaid

Who ATTENDED IN 2019?

Attendees include convenience and impulse operators from the broader convenience market including management teams from the major convenience chains, petroleum retailers, independent chains, stand-alone independents and industry suppliers and wholesalers.

Retailers directly involved in purchasing decisions

81%*

19%*

Yes

No

Main reason for attending C&I Expo

83%*

Experience new products and new equipment

95%

*

67%*

Networking

OF ATTENDEES GAVE THE EVENT A POSITIVE RATING

*Source: C&I 2019 Post Event Attendee Survey

www.candiexpo.com.au

1300 789 845

STORE REVIEW

Paul Ormerod, Chief Commercial Officer

Enhance Corrimal opened its doors in February 2021

ENHANCE THE CUSTOMER EXPERIENCE

Enhance Corrimal has recently launched with a brand new retail concept called Fletch & Co, which focuses on lifting the customer experience.

T

he Park family of businesses has launched its new back court retail concept, Fletch & Co, with brand values that focus on exceptional customer service, barista quality coffee, competitive pricing, and cleanliness.

Park is a proudly Australian-owned and family operated fuel importing business that was established by the Fletcher and Honan families in 1991 as a viable alternative to the four major oil companies. It has a long history of supplying fuel to independent service stations and even had a hand in the creation of E10 fuel. The business is now owned exclusively by the Fletcher family under the direction of CEO, Brett Fletcher.

Enhance is the retail division of the Park family business with six owned sites, 24 branded sites, and eight 24-hour diesel stops along the eastern seaboard. Its sites stretch as far down as Melbourne and as high up as Brisbane, but its nucleus is in the Illawarra region.

10 April/May 2021 | C&I | www.c-store.com.au

Enhance Corrimal, which launched in February, is the first site to have the complete Enhance forecourt and Fletch & Co back court offerings. The strategy now is to upgrade the remaining owned sites, beginning with Kiama and Robertson. At these sites, initially the back court will be flipped to Fletch & Co, with the forecourts to be upgraded over the next two years.

Paul Ormerod, Chief Commercial Officer, said he wants Enhance to become famous for its customer experience.

“I’ve created within the business three Enhance brand values, and they are that we are always competitively priced on fuel, that the facilities are always clean, tidy and safe, and the third is that we are always in stock,” says Ormerod.

“We want to be better than everyone else at customer service and so everything we do is very customer centric. Every time you touch Park, Enhance or Fletch & Co, I want you to leave and say the experience was excellent. That’s my passion.”

To achieve these high levels of customer satisfaction, Ormerod has created a set of brand values for Fletch & Co, including clean and tidy toilets, barista quality coffee and freshly baked goods ready within two minutes.

Service stations are not traditionally renowned for the cleanliness of their toilets, so to achieve their goals, the toilets at Enhance sites are quality checked every 15 minutes.

“We’re not a major and want to be recognised as the best independent. That is really where we’re trying to get our niche,” said Ormerod.

The greatest challenge for Enhance is ensuring the 24 sites that are not company owned are living up to the Enhance brand values. To achieve this, they have recently employed a full time Enhance Account Manager who visits each site once a quarter with a 100-point checklist to safeguard company expectations.

STORE REVIEW

Aisle interrupters inside Enhance Corrimal encourage impulse purchases

Fletch & Co provides customers with barista quality coffee

The team at Enhance Corrimal pride themselves on their exceptional customer service

I think service stations are going to become known for different things as we all start to evolve. I would like to be known as having great barista coffees, hot food, and great toilets.”

- Paul Ormerod, Chief Commercial Officer

“I’ve got six owned sites where my staff are properly trained, they all wear the uniform, they all know exactly what to do so that the level of service is properly executed. The challenge is that I then have 24 branded sites that aren’t operated by my staff, so they aren’t trained in the same way and they don’t live up to brand values, so I need those sites to come up to the minimum standards.”

to keep customers coming back and to get them hooked on the barista quality coffee.

But Ormerod says this challenge is also the brand’s greatest opportunity, as he has been receiving an influx of enquiries from independent service stations wanting to have their sites flipped to Enhance.

“The metrics that I look at within retail are that I’d like people to be coming in more frequently. I want them getting hooked on things like our coffee, hence why we gave it away for free for a month.

“We have the ability to grow really quickly but that is a challenge in terms of making sure our Enhance brand is maintained.”

WINNING IN CUSTOMER SERVICE The updated Enhance forecourt at Corrimal includes all four of Enhance’s fuel offerings at each bay and a separate high flow diesel section for big trucks.

One element that Fletch & Co would like to be known for is its clean and tidy toilets

“It’s all about being a safe, easy, undercover, clean and tidy experience,” says Ormerod.

Inside, the retail store is a bright and inviting cross between a café and a service station, with plenty of opportunity for impulse purchasing.

“We’ve included aisle interrupters with things like healthy snacks or ice creams, so it’s similar to somewhere like JB Hi-Fi where they make you walk through the carousel, and it’s quite innovative for a service station.”

Fletch & Co gave away free coffees for one month on opening to get its customers hooked

Building customer relationships as well as encouraging people to shop more frequently are key priorities and so when the Corrimal site opened, they gave away free coffee for a month

“Park is a family business and we’ve been in this community for 30 years, so we really want to engage with our customers. We will greet them by name and ask them about their day, all those things to make it more than just a transactional interaction.

“Average order frequency is the thing that I’m trying to attract and ultimately I want to try and raise their basket or average order value.

“As a business we have tripled our size in 10 years, which is fantastic. The challenge that I’ve got is making sure that the profit mirrors the volume, and that’s what I’m striving to do.

“I see service stations becoming a bit more important to the community, so we’ve all got to lift our game. We’re never going to be a supermarket, but we’ve got to be better than the service stations of old.

“We also need to be thinking about future technology and how we could embrace it. With electric cars, they obviously take a little while to charge so you need to give customers something to do while their cars are charging. We need to be thinking about things like that in terms of the facilities we can provide.

“I think service stations are going to become known for different things as we all start to evolve. I would like to be known as having great barista coffees, hot food, and great toilets.

Everyone is going to have their place and it’s going to evolve quite quickly.” C&I April/May 2021 | C&I | www.c-store.com.au 11

$30 and $40 Star Was $30, now

24

$

ea

Data for use in Oz. Extra Data is available on every Automatic Recharge for both new and existing Prepaid Combo Plus cust

Things you need to know: Personal use only. You will require a credit or debit card to activate and/or opt-in to Auto Recharge online. Starter pack must be activated Starter Pack and opt into Automatic Recharge. 30GB on $30 Prepaid Combo Plus Starter Pack (10GB incl, total 40GB). Applied within 72 hours following successfu available at vodafone.com.au/sfoa. All offers subject to change. Prescribed ID and user details must be provided. Recharge costs additional. Not transferrable or redeem charge onto $150 Prepaid Combo Plus. You will forfeit any unused My Data balance if you do not recharge before expiry. My Data is the included data of your recharg My Data balance that will exceed the 200GB limit of Data Bank when saving any unused My Data. You will lose your Data Bank balance if you recharge on an ineligib that is over that limit. Your eligible plan will automatically start using your Data Bank balance when you have used up all the data balances on your plan within expir

rter Pack Offers Was $40, now

32

$

ea

tomers (‘Eligible Customers’) who opt in to Automatic Recharge. Starter Pack must be activated with 365 days of purchase.

d within 365 days of purchase. Extra Data: available to new and existing Prepaid Combo Plus customers who purchase and activate a Prepaid $30 and above Combo Plus ul activation. Limit 2 per customer. When you activate your Vodafone SIM you accept the Vodafone Standard Form of Agreement. A summary and the full agreement are mable for cash. For new customers prescribed ID and user details must be provided. For details, head to vodafone.com.au/atr. Data Bank: Data Bank can not be used if you rege. Any other data balances you may have on your plan will not be saved to your Data Bank balance upon recharge unless explicitly mentioned. You will forfeit any unused ble plan, or your service is disconnected or deactivated for any reason. If you move to any plan or offer with a smaller Data Bank limit, you will lose data in your Data Bank ry. Data Bank balance cannot be used when your recharge has expired. (i.e. Active recharge on an eligible plan is required to use Data Bank).

OUTBACK SPECIAL

The breathtaking views in Gunbalanya, Northern Territory

OUR STORY OF OUTBACK STORES This is the second instalment of a two-part series written by travelling remote store manager, Mark McGirr.

Life is an adventure. It just depends on what track you want to take.”

– Mark McGirr

I

n the last issue of C&I Retailing Magazine, Mark McGirr and his wife Penny had just said their goodbyes to the community of Peppimenarti in the Northern Territory and were off for three months travelling the Kimberley.

Let’s continue with them on their journey as travelling remote store managers…

Our next stint was with a company called The Arnhem Land Progress Aboriginal Corporation (ALPA). This is a large company that manages quite a few remote stores in the Northern Territory and Queensland. We flew from Cairns to Darwin and, after an induction at their head office, were flown out to a community called Ramingining in Arnhem Land.

We were there as assistant managers, to go through company training. We knew their computer systems as it was the same as we had used in Peppimenarti. Their ordering system was again similar, dealing with the same suppliers. But being a much larger company, they had a merchandise team that did the special buys and allocated stock to the stores when needed. The managers here were a young couple and great to work with. The store was old and due for an upgrade, however, it had a large takeaway section with a separate entrance. There were a large number of staff working in the store and we traded seven days a week. The store was owned by ALPA, rather than the community. They own a few stores in other communities, while most other stores are classified as ‘consultancy stores’ and owned by the community.

14 April/May 2021 | C&I | www.c-store.com.au

They had a core range, as they called it, a top 50 lines of products that were the same for every community. You could deviate from this range or increase the range but had to get approval prior to doing this from the merchandise division, which was never easy.

Stock was brought in by barge each week. The store had a truck and trailer that would drive the eight kilometres to the barge to pick up the stock. After three prior postings, we could see that warehouse space as well as chiller and freezer space varied dramatically from location to location. Coming from the Peppimenarti store, that was designed to carry large volumes of stock and had the space to store stock, this store had a very large turnover with very small storage areas. Stock for the chiller and freezer was constantly double handled to always make space.

We were here for three weeks before being flown to another community, Gapuwiyak, to assist in running a different store for a three-week period while the managers went on holidays.

The ordering system the company used was long and drawn out.

Every supplier had its own folder with ordering sheets. These had to be filled out manually and then had to be inputted into the computer by the price look up (PLU) numbers. Some orders took up to three hours by the time the sheets were filled out and punched into the computer with the quantities needed. It was a rather frustrating and antiquated system. The systems in every other store prior had used a scanner with an input for the order quantity, which was then uploaded into the computer.

This took between 20 to 30 minutes for a major supplier.

OUTBACK SPECIAL After five weeks, we were finally given a store to manage on our own. It was located at Gunbalanya in West Arnhem Land, in Kakadu about 300km east of Darwin. The store had been renovated and was located within walking distance of our accommodation. We replaced the managers who had been there for two years. The store had a good-sized warehouse plus another two old warehouses. It was located just up the road from Cahills Crossing, which is a huge crocodile habitat and is subject to heavy seasonal flooding. The store did have to carry four months worth of stock due to being isolated in the wet season.

The freezer storage was sizeable, while the chiller storage was very average. A small change in shelving gave us a little more room. We had quite a few local former staff come and see us as they were wanting to come back to work because they had never got on with the previous managers.

The community did have another store located next door. This store was owned by a non-local who had lived in the community for many years. It was a smaller store but still our competition.

After two weeks, our area manager came to introduce himself and have a meeting with the staff. We started finding things becoming frustrating over time. After managing a store for two years and having the freedom to run the store, we were now being micro-managed. We had an area manager, the merchandise division and other people from head office all overriding each other on basic things as well as how the store should be run.

Running a store previously with control and flexibility and finding ourselves with a company that controlled just about everything was just too hard. In the end we did not know who our boss was. We were just store caretakers rather than store managers. We decided that we could not continue following their strict rules and resigned after three months.

We were flown back to Cairns from Darwin and had another job lined up in Bidyadanga in Western Australia. We drove from Cairns to just south of Broome where the community was located.

Our roles there were as assistant managers. The store was run by the local council and they did a good job. The community was the largest in Western Australia and the store was quite large. As the warehouse was small the pallets from our weekly deliveries were stored on the floor at the end of each aisle. The main

Inside the store at Tjuntjuntjara in Western Australia

Mark and Penny McGirr

delivery truck would come from Perth each week while ice and a few other items would be delivered from Broome. We had three local workers and a very busy takeaway section that opened all weekend. The accommodation was a two-bedroom house, but whereas every other company we worked for charged no rent or electricity, here we paid $50 each per week with electricity on top.

We traded six days a week and each day after we closed at lunchtime, I would walk 200 metres to the fuel bowsers and stand there for 20 minutes in case someone wanted fuel.”

- Mark McGirr

The community was located on the coast and the scenery was quite different to what we were used to, with long beaches and a large tidal creek. The tides were large with low tide going out a kilometre from the beach.

We only stayed here for a few months as Penny was diagnosed with prediabetes and had to have an operation to reduce weight.

To make matters worse, my father had cancer and he was deteriorating; so, we decided to leave and head back home to Wollongong. Penny had her operation, and we spent the last six months with dad before he passed away.

After eight months in Wollongong, we decided it was time to head back to work and applied for a job at Outback Stores.

We were given a job as relief managers and were flown to Alice Springs to start. The company was similar to ALPA, managing around 40 remote stores in the Northern Territory, Western Australia and South Australia. We were hesitant at first, working for another large company after the frustrations we encountered at ALPA. But, after discussing our concerns with them, we learned that the management here was different.

The Tjuntjuntjara store was very isolated and consisted of three demountable buildings April/May 2021 | C&I | www.c-store.com.au 15

OUTBACK SPECIAL

The store had a great selection of fresh fruit and vegetables

Inside the store at Yuendumu in the Northern Territory

The incredible scenery, the great friends and our outback experiences during our travels have forged unforgettable memories.”

- Mark McGirr

Our first store as relief managers was in Ali Curung, 170km south of Tennant Creek, and 378km north of Alice Springs with a population of just 500. Then we were flown to Ceduna in South Australia and drove 10 hours to a small community in Western Australia called Tjuntjuntjara, a large Aboriginal community located 650km north east of Kalgoorlie in the GoldfieldsEsperance region, in the southern part of the Great Victoria Desert. This was a very isolated and a very old store. It consisted of three demountable buildings put together to make a store. The accommodation was a demountable with two bedrooms, a small bathroom plus a kitchen and lounge area combined.

We traded six days a week and each day after we closed at lunchtime, I would walk 200 metres to the fuel bowsers and stand there for 20 minutes in case someone wanted fuel. They either paid cash at the bowsers or prepaid for fuel at the store.

The store was owned by the local community with no tarred roads anywhere. The nearest towns were a 10 hour drive away to either Ceduna or Kalgoorlie. Our fortnightly truck would travel from Ceduna along the same dirt road we travelled to get there.

We had no store workers. But as the store and the community were small, we could run the store quite easily on our own.

The storage was quite good as the warehouse was a lot larger than the shop and we had two 20 foot shipping containers, one as a freezer and one as a chiller. Being a small store, we had no toilets and would have to go home if the need arose. The accommodations. Located right behind the store, made it easy. It was the first store we encountered where there was ice cream that

Yuendumu was one of the more modern stores that Penny and I have managed

was sold in only two litre tubs. Chips were only available for sale Friday afternoon and Saturday mornings and signs on the drink fridge door advised no full-strength soft drink could be sold to kids under 16. This did not stop the parents buying the drinks for the kids, but it showed that the local directors took their store seriously.

Most of our relief work lasted five to six weeks in each community while the managers were on holidays. We continued our relief work until COVID hit and then stayed at a store located at Willowra in the Northern Territory about 300km northwest of Alice Springs and 400km southwest of Tennant Creek. We were there for three months until the biosecurity borders were lifted in the state and we could travel to other stores. Even though Outback Stores still had control of what was carried in the stores and would allocate excessive stock to stores to keep figures and KPIs up, they did have more hands-on area managers who were helpful, and head office would also assist when needed.

So, what is it like working in remote communities managing a store? It can be frustrating, with long hours to be expected, normally up to 11 hours a day. It can be rough, coping with isolation, working with your partner/wife every day, which can put a strain on relationships. Lack of staff, break ins and theft are just some of the other things you need to contend with. We learnt along the way to get into a routine; never get involved in disputes in a community or take sides; be fair but firm with staff and make work enjoyable for staff; be respectful and learn to understand the different cultures in communities. This type of work is not for everyone. But we enjoy it. The incredible scenery, the great friends and our outback experiences during our travels have forged unforgettable memories.

Aisles of canned goods at the Yuendumu store

16 April/May 2021 | C&I | www.c-store.com.au

Life is an adventure. It just depends on what track you want to take. C&I

PLANT BASED FOOD

GOING GREEN

Plant-based food has never been in higher demand, so it’s time to reevaluate your offering.

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onvenience and proximity to home have become more and more important for consumers post COVID-19 restrictions. The petrol and convenience (P&C) channel remains crucial as more customers are getting back on the road and are on the lookout for hot on-the-go meal and snacking options known as ‘Food for Now’; as well as convenient ready-made meal options to heat at home known as ‘Food for Later’.

Research from YouGov found that nearly half (49 per cent) of Australians are interested in cutting down their meat consumption for health or sustainability reasons. Younger generations are more likely to be interested in doing this than older generations, with Millennials being the most likely generation (Gen Z 61 per cent, Millennials 63 per cent, Gen X 52 per cent, Baby Boomer 33 per cent).

Plant-based meats are spurring on changes in the global food system that could have major environmental benefits. A growing body of research predicts global expenditure on plant-based meats to reach up to US$140 billion by 2029.

Australia is uniquely positioned to lead the charge; we have the CSIRO science, amazing Australian farmers and the ambition to make a real difference to the planet.

As plant-based meal and snacking options become increasingly popular, the P&C channel is uniquely positioned to range hot, on-the-go products catering to all lifestyle choices that will 18 April/May 2021 | C&I | www.c-store.com.au

encourage additional consumption occasions and drive category value for retailers.

Four ‘N Twenty is the market leader in the hot, on-the-go savoury category within P&C, and despite reduced foot traffic within the channel, the brand has seen continued growth.

Traditionally known for its meat-based products, 2020 saw the launch of the first ever Four ‘N Twenty Meat Free Pie and Meat Free Roll, which have been very well received within the P&C channel, with particularly high sales during the lunchtime period, according to Anand Surujpal, General Manager Marketing and Innovation, Patties Foods.

“During the past year, Four ’N Twenty sales have consistently outperformed the category in the petrol and convenience channel, with the Meat Free Pie and Roll being a critical part of the product portfolio.

“Four ’N Twenty has great tasting, high quality products for all customers to enjoy even flexitarian and plant-based eaters. The ongoing success of Four ’N Twenty products in the channel will see some new and exciting launches throughout the year.”

Consumer demand for plant-based meal and snacking options continues to grow, and suppliers are meeting that demand with an increasing number of product launches within the vegetarian, flexitarian and even vegan product options.

PLANT BASED FOOD “Patties Foods are committed to evolving and growing our product range to cater to all lifestyle choices, as well as understanding the needs of these customers,” says Surujpal.

“Furthermore, there has been a greater demand for hot on-thego snacking options in P&C stores to complement hot pastry purchases and afternoon snacking occasions. This year will see some exciting new formats launch into snacking, which will ensure food on-the-go continues to be a strong contributor to growth of the channel.”

Sam Tomeo, Marketing Manager, Mrs Mac’s, highlights that one in three Australians are actively reducing meat in their diets and point out some trending plant-based flavours.

“We are seeing increased demand for vegetarian options in the hot food category,” says Tomeo. “As part of this health trend, it’s critical that brands like Mrs Mac’s and our retailer partners continuously evolve our plant-based offer to ensure we stay relevant to this growing segment of health-conscious consumers.

“One of the emerging trends in plant-based is the demand for traditional formats to extend into trending plant-based flavours. An example of this is the demand for Mexican style flavours. Mrs Mac’s has seen this trend and it is one of the reasons we launched a burrito style sausage roll, which is a plant-based option with black bean and chipotle.

It’s absolutely delicious!”

During the past year, Four ’N Twenty sales have consistently outperformed the category in the petrol and convenience channel, with the Meat Free Pie and Roll being a critical part of the product portfolio.”

- Anand Surujpal, General Manager Marketing and Innovation, Patties Foods

Suppliers are committed to evolving and growing the range of plant-based offerings available to consumers, within both food for now and food for later.

Patties Foods has been enjoying great success with its Ruffie Rustic Foods range of plant-based ready-made meal options, with the Chicken-ie Schnitzel quickly becoming the brand’s highest selling meal with almost 100,000 units sold in just 20 weeks.

“Our broad range of products ensures our offering remains interesting and exciting for all customers,” says Surujpal.

“As a company, Patties Foods is committed to continuing to invest in research and recipe development to ensure we’re constantly meeting consumer demands and current food trends. We have some exciting new projects in the pipeline that consumers and retailers can expect to see in-store very soon!”

NEW TO PETROL & CONVENIENCE Australian-based v2food (v2) is an innovative company committed to making delicious food that is good for you and good for the planet. The brand has a great range of plant-based v2burgers, v2mince and v2sausages that are available in retail and distributed by major food service wholesalers nationally.

As a relatively new business, v2 has been focused on building distribution through retail, QSR and broader food service channels.

But the business is currently in the process of actively seeking partners to expand into P&C from the second half of 2021.

Nick Hazell, Founder and CEO of v2, said that after just six months in the retail market, v2 had already established itself as one of the top plant-based meat brands in Australia.

April/May 2021 | C&I | www.c-store.com.au 19

PLANT BASED FOOD

We are hoping to capture the rapidly growing plant-based sausage market, which is estimated to reach US$1 billion by the end of 2021.”

- Nick Hazell, Founder and CEO of v2food

“In 2021, a key goal will be developing our Australian-made supply chain. We will shortly be unveiling our new $20 million factory in Wodonga that will help super-charge our production.

We want to be made in Australia and export around the world as a great national manufacturing story.

“We are excited to launch several new products this year, the first being v2sausages, set to hit supermarkets in April. We are excited to bring Aussies a classic favourite they know and love in a plant-based form.

“Following the success of our v2mince and v2burgers, which launched in Coles, Woolworths and Drakes supermarkets last year, v2sausages are our first new product innovation.

We are hoping to capture the rapidly growing plant-based sausage market, which is estimated to reach US$1 billion by the end of 2021.

“This is an exciting opportunity for the Australian agriculture industry as a whole to be at the forefront of this growing market, which will help them develop and create new jobs. This isn’t about taking a share of the existing meat market; this is an additional opportunity to create an entirely new category. And adding value to Australian legumes by converting them to plant based meat that Australia can export,” says Hazell.

Australia’s first manufacturing facility for plant-based meat was opened last year by Proform Foods, which owns and distributes the brand MEET. While MEET’s range of 28 plant-based food products, including burgers, MEETballs, ‘beef style’ strips, ‘chicken style’ tenders, and mince, are not yet available through the P&C channel, they have recently been ranged through 820 Coles stores across Australia and are also available through IGA, Foodland and many independent supermarkets.

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Matt Dunn, CEO, MEET, told C&I that they are continuing to work on increasing their distribution both within Australia and in overseas markets in 2021.

“Over the next 12 months, we want to make MEET more available than ever by partnering with Australia’s leading retailers. We also have plans to commence international exports and expand globally with lots of interest and engagement already,” he said.

“Over the next year, we will scale up, grow our business, expand our distribution footprint, hire more workers for our plant in Sydney’s north, and seek local and global export partners. We want to continue to diversify our range and provide top-quality products to our customers.

“In the convenience and impulse retail sector, there is a huge opportunity to further innovate with plant-based products for customers wanting to pick up easy-to-eat plant-based items. We’ve seen more products introduced in stores, but innovation is always welcome to further improve the offering and diversify the range.”

Nicholas Ryan, CCO, MEET, said: “Apart from the growing demand, the rise of plant-based lifestyles goes hand in hand with the rise of ethical or conscious consumerism, which means shoppers care about where their product comes from, how it’s produced and what ingredients it uses. That’s why MEET benefits from being family-run, Australian-made and owned, and environmentally conscious.

“We’ve also seen a trend in many people reducing the amount of meat they eat, tasting these options as a way to get their protein.

Our products are the closest to conventional meat and will appeal to those looking to substitute protein but who want the taste and texture of meat.” C&I *Convenience & Impulse Retailing would like to thank Patties Foods, Mrs Mac’s, v2food and MEET for supplying information for this article.

CHOCOLATE BARS

RAISING THE BAR

The chocolate segment continues to be one of the most resilient within the convenience channel, writes Claire Hibbit.

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hocolate remains one of the most impulsive categories in the petrol and convenience (P&C) channel, driven by strength in brand innovation and in-store product placement.

The chocolate segment has proved resilient over the past 12 months, dropping slightly in the first half of 2020 before improving as restrictions relaxed and foot traffic normalised.

According to the Australasian Association of Convenience Stores (AACS) State of the Industry Report 2019, chocolate bars is the strongest sub-segment of confectionery representing 30.6 per cent of all confectionery sales.

Industry shopper insights have also found 20 per cent of shoppers purchase more items than they planned when buying confectionery, while almost 50 per cent of convenience store shoppers purchase chocolate at the counter.

SHIFT TO SHARING FORMATS Anna Matheson, Channel Manager Convenience & Impulse, Nestlé, told C&I, 2020 saw a significant change to consumer behaviour in particular, shopper snacking missions.

According to Nestlé, the snack/treat mission has significantly grown in penetration, up 11 per cent1 compared to 2019 to 66 per cent2. Chocolate retains the greatest penetration levels within snacking segments, growing to 38 per cent3.

Nestlé has a portfolio of leading chocolate brands that cater to a variety of consumer missions. According to the company, KitKat remains the leading chocolate bar brand in Australian convenience, (growing 3.7 per cent2) driven by KitKat 45g, which is the number one medium bar2.

Milkybar is also the market leader in white chocolate2, while the AERO bar's portfolio provides a unique aerated offer to the segment and is worth more than $2.1 million in the channel2.

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CHOCOLATE BARS According to Matheson, there has been significant shifts within confectionery towards sharing formats, expanding beyond ‘consume now’ to ‘consume later’ with friends or family.

“The shift within formats, towards sharing occasions has had an impact on the bars segment, which remained relatively flat in 2020 at -0.4 per cent2.

“Nestlé drove incremental value to the segment, with KitKat share bars growing 10.6 per cent2, driven by core line growth (KitKat 65g 13.6 per cent2) in addition to highly successful rotational flavours, which drove excitement to the segment.”

Additionally, buying and supporting local brands has remained a key factor in consumer shopping behaviour.

“Communities supporting one another, the importance of Australian Made and the role of trusted brands which deliver to expectations have accelerated in importance post the significant impacts 2020 had on consumers,” Matheson said.

Mars has also witnessed accelerated growth of its sharing formats.

“People are spending more time than ever at home and spending family time together on the couch so products like Maltesers or M&M’s were a big hit,” Danielle Gaylard Customer Development Head Convenience, Mars, said.

INNOVATION DRIVING FREQUENCY AND CONVERSION Product innovation is critical in driving frequency and conversion, by injecting new news and excitement into the category.

“We know that when times are tough, Australians often look for that small treat to reward themselves and break up the mundane chores of life, like filling up at the petrol station. So, bars played a critical role in surprising and delighting our Aussies through a tough year.”

Despite challenges for the category, increased product visibility and strong promotional support has helped Ferrero’s Kinder Bueno range buck category trends to record double digit growth (14.4 per cent)5 over the last 12 months.

According to Mars, M&M’s is growing at 4.3 per cent in the bitesize chocolate segment, while Maltesers is growing at 9.8 per cent and Pods at 18.6 per cent4.

Additionally, the Mars and Snickers branded king bars make up two of the top four SKUs in convenience confectionery and the Mars king bar portfolio (which includes Snickers, Mars, Twix and Bounty) accounts for six per cent of all confectionery sales across the channel despite only being a range of four SKUs. “We also saw fast adoption of home delivery options through the convenience industry, which drive incremental sales to in-store.

As restrictions have eased across Australia, we continue to see growth in this space especially in larger sharing confectionery formats,” Gaylard said.

For Robern Menz, owner of FruChocs and Violet Crumble, the P&C channel continues to play an important role in its overarching distribution strategy.

“We are always looking at how we can be present in locations that make sense for our customers; we never want it to be a trek for them to find their favourite Robern Menz products,” said Polly Love, Marketing Manager, Robern Menz.

“Our nostalgic brands, including FruChocs and Violet Crumble have continued to sell well throughout the COVID-19 period through the P&C channel as a result of people spending more time at home and turning to their go-to favourites for comfort.”

As the leading bar brand, KitKat innovation plays an important role in driving category growth and driving frequency within the segment.”

– Anna Matheson, Nestlé

According to Sheri Juchau, Category Development Director for Ferrero Australia, a strong performance last year has paved the way for a successful 2021, supported by the launch of new Nutella B-ready bars.

“Already popular in Europe for on-the-go snacking occasions, Nutella B-ready offers convenience retailers an attractive, lighter addition to the current chocolate offering,” Juchau said.

A key launch of 2020 for Nestlé was KitKat Gooey Caramel 45g and KitKat Mint Fudge 45g which expanded KitKat into an indulgent need state through Nestlé’s filled bar portfolio.

According to Nestlé’s Matheson, the products were highly successful in driving a younger demographic to the medium bars segment and drove incremental sales to its core range.

Additionally, the KitKat team has recently launched the new KitKat ice cream inspired range – two flavours inspired by some of Australia’s top ice cream flavours Mint Choc Chip and Caramel Crisp.

“As the leading bar brand, KitKat innovation plays an important role in driving category growth and driving frequency within the segment,” said Matheson.

Mars is also preparing for several consumer led innovations with its three biggest bar brands this year, Mars, Snickers and Twix.

April/May 2021 | C&I | www.c-store.com.au 23

CHOCOLATE BARS

Our experience shows that P&C shoppers are looking for products that they know and love, preferring to stick to the brand names they trust.”

– Polly Love, Robern Menz

Gaylard advises to use new flavours to attract attention and break shoppers out of their shopping trance, but do not forget to display with the core brands as they will deliver you the bulk of your sales.

“We know consumers love a trusted brand with a slight twist and we have some exciting innovation on its way to convenience stores,” said Gaylard.

Over the last 12 months, Robern Menz has expanded the Violet Crumble product range and successfully launched Violet Crumble Caramel, Violet Crumble Dark, Violet Crumble Nuggets, limited edition Easter Egg and Bunny, Violet Crumble Golden Gaytime ice cream and crumb toppings and Violet Crumble Santa.

It also collaborated with another South Australian family-owned business, Bickford’s, for the launch of Violet Crumble Milk.

“We are always looking at new ways for Aussies to enjoy our products,” said Love.

“We continue to strengthen our position in the market with the innovation of our existing core product range, as well as expanding our portfolio, such as with the purchase of the Violet Crumble brand from Nestlé in 2017.”

PRODUCT PLACEMENT ACROSS MULTIPLE TOUCHPOINTS The P&C environment reaches a broader demographic, while catering to a different need state where consumers often actively seek out new products, or those suited to on-the-go consumption.

According to the 2019 AACS State of the Industry Report, more than 30 per cent of all confectionery purchased is bought on promotion, with an average spend of $11.30. Almost 30 per cent of the confectionery shopper’s mission is to buy fuel.

Sources: CMA Convenience Shopper Report 2020 March

1

AC Nielsen AUS Convenience Year 2020.

2

CMA Convenience Shopper Report 2020 August

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4

Nielsen Scan MAT 07.02.21

IRI Scan data; Convenience; Choc. Bars; MAT to 14/02/21

5

“Chocolate bars is one of the most impulsive categories in your store,” explains Gaylard.

“Shoppers don’t think about it and won’t search for it, but when it is in front of them at the point of purchase, they will pick it up.

This is one of your most effective ways to get your shoppers to spend more in your store.

24 April/May 2021 | C&I | www.c-store.com.au

“Shoppers will try the new and exciting but will generally revert back to the core because it reminds them how much they love the original.”

Matheson notes driving sales at counter and off location displays are crucial to conversion by reaching the consumer with multiple touchpoints.

“Chocolate remains one of the most impulsive categories in the P&C channel, with 21 per cent of shoppers buying more than they planned when entering a store3. Almost 50 per cent of shoppers purchase chocolate at the counter3, reinforcing the role of visibility on the path to purchase.”

According to Love, Robern Menz has an expansive distribution and retail channel that covers various touchpoints, including P&C. “We base our positioning approach on how consumers interact at each touchpoint and for P&C this means ensuring that we make our products’ presence known so that it’s easy for people to grab and go.

“Our experience shows that P&C shoppers are looking for products that they know and love, preferring to stick to the brand names they trust; something that works in our favour as a brand that has fans across the country that grew up with our treats.”

For Ferrero, P&C is a high-traffic channel which delivers increased awareness and trial for new products such as Nutella B-ready, while maximising visibility for key Ferrero products, particularly the Kinder Bueno range.

“The consistently strong performance of the Kinder Bueno range demonstrates the incremental value to retailers in offering variants of popular products, particularly at the register.

“Multiple locations and displays drive up to 33 per cent higher purchases5 by offering additional opportunities for consumer consideration, which is why our POS displays are designed to attract attention in a range of spaces,” said Juchau. C&I Convenience & Impulse Retailing would like to thank Nestlé, Robern Menz, Mars and Ferrero for supplying information for this article.

FLAVOURED MILK

LIQUID GOLD

Why flavoured milk is a critical category to get right, by Claire Hibbit.

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he flavoured milk category can be broken down into many smaller segments that cater to a range of occasions, making it ideal for growing basket sizes in the petrol and convenience (P&C) channel.

Within the total impulse ready-to-drink (RTD) sector, flavoured milk is the second highest category, accounting for 26.4 per cent of national spend on drinks*.

According to Corie Dickeson, Category Manager, Beverages, Lactalis Australia, the flavoured milk segment is seeing unprecedented and sustained growth within the P&C channel, as well as maintaining strong growth within grocery.

“Post an initial drop off as the first wave of COVID hit all P&C hard, flavoured milk is seeing significant growth driven in part by cars on the road with Australians holidaying at home,” explains Dickeson.

“But as a category that plays to ‘treat’ and ‘pick me up’ what is playing out is what can be termed ‘the lipstick effect’ – whereby categories that fit into a small outlay treat see enhanced growth through times of economic downturn or hardships.

“Other categories that benefit are the likes of confectionery, ice cream, alcohol, and the QSR sector. Flavoured milk and these other ‘pick me up’ categories are likely to continue to see strong growth despite any changes likely in government support packages.”

SHOPPER MISSIONS RETURN TO P&C

During this time just over 50 per cent of shoppers were visiting convenience stores either the same or more. The study noted a decline in supermarket shoppers using convenience stores in May, however, there were still one in four shoppers using them more than before.

The latest quarter of scan data to mid-February saw P&C flavoured milk (+6.9 per cent) outgrow grocery (+6.7 per cent) nationally for the first time in more than four years, with this trend of higher growth within convenience expected to continue throughout 2021.

“Over the last four years, and prior to COVID, we had seen the growth of smaller but more frequent grocery shops, which certainly had the effect of creating some channel shift with flavoured milk, with impulse flavoured milk driving strong category growth for the grocery retailers, whilst P&C remained largely flat in sales.

“As a result of COVID, this is certainly reversing with grocery continuing to see growth but being driven by take home pack sizes in flavoured milk aligning to the shift back towards bigger, less frequent grocery shops. Consumers returning to P&C for their top up are helping drive an impulse category like flavoured milk.”

Within the caffeinated iced coffee segment, growth is being driven by better-for-you options such as low or no added sugar.

The P&C channel is also witnessing a resurgence in consumers visiting convenience stores more frequently. This trend was highlighted by studies commissioned by AACS through Convenience Measures Australia, the first at the end of March 2020, followed by a second study at the end of May 2020.

As Dickeson notes: “This makes complete sense as iced coffee is driven by heavy and frequent users who often then reduce consumption or drop out of the category altogether as they get older. Given two-thirds of flavoured milk category value comes from iced coffee, retaining these heavy users and growing frequency will continue to grow the category over a sustained period.”

The first wave highlighted that 47 per cent of shoppers were looking for alternatives to supermarkets as certain products became harder to get, but also so they could be in and out of stores quickly and around fewer people.

Where Lactalis has found consumers’ behaviour isn’t shifting to reduced sugar options is within the ‘rainbow’ segment which incorporates all other flavoured milk – chocolate, strawberry, and vanilla products.

26 April/May 2021 | C&I | www.c-store.com.au

FLAVOURED MILK “As these are bought primarily as a treat or an in between meal snack, growth is being driven out of new, limited edition flavour launches throughout 2020, which drive trial and ultimately increase basket spend.”

We have recently launched two SKUs of ‘No Added Sugar’, reduced fat, lactose free and gluten free 500ml bottles in chocolate and coffee.”

NEW PRODUCTS FROM OLD FAVOURITES Last year, Robern Menz, owner of FruChocs and Violet Crumble, joined forces with Bickford’s Australia to create Violet Crumble Chocolate Honeycomb flavoured milk.

The product is available in Coles (excluding WA), Coles Express, Caltex stores, Drakes and IGA stores nationally and Romeo’s and Foodland supermarkets in South Australia.

According to Amelia Wright, Brand Manager, Bickford’s Australia, the product has been performing extremely well in the P&C channel.

– Frank Morena, General Manager, Sales Marketing and Distribution, Nippy’s Fruit Juices

“Upon launch we saw the rate of sale skyrocket which with a collaboration product launch like the Violet Crumble Milk is expected due to excitement purchase,” said Wright.

“The product has been so well received that this rate of sale has not dipped since launch, meaning that repeat purchases are being made and it isn’t a ‘fad’ or once off purchase.”

The P&C market is also a significant sales channel for Nippy’s, a wholly South Australian family-owned company. “This channel has seen a great deal of growth over the past few years and we only see it growing further into the future,” explains Frank Morena, General Manager, Sales Marketing and Distribution, Nippy’s Fruit Juices, “hence, it is imperative that we are involved going forward”.

According to Morena, Nippy’s coffee and chocolate milk are the strongest performing variants in this channel; however their extensive range of ‘rainbow’ flavours have also seen good growth, adding he anticipates plant-based flavoured ‘milk’ varieties to play a bigger part in the category going forward, and is an NPD focus for the company.

“With all of the hype regarding sugar, one would think that the flavoured milk category might be suffering sales wise, however, this has not been our experience to date. We have recently launched two SKUs of ‘No Added Sugar’, reduced fat, lactose free and gluten free 500ml bottles in chocolate and coffee, which we anticipate will help in growing the overall category.”

Nippy’s has also launched a 250ml Combibloc ‘No Added Sugar’, reduced fat, lactose free and gluten free chocolate and strawberry, the first retail pack in Australia with a paper straw, mainly aimed at the kid’s market.

All brands across the Lactalis portfolio are also seeing strong growth in the channel since the recovery from COVID, with Oak growing at six per cent for the last 26 weeks and nine per cent in the latest quarter.

“For Oak, the key has been winning the battle of NPD within the ‘rainbow’ segment. In fact, Oak sold more units of new products launched last year than any other flavoured milk brand in each state and territory it is ranged,” said Dickeson.

AT A GLANCE Oak is gearing to launch three new limited-edition flavours created by Oak fans as part of the successful Oak Flavour Generator campaign. The three flavours chosen will feature their inventor’s faces printed on the cartons, as well as in advertising to promote them. The flavours will be sold in supermarkets and convenience stores around the country from late April.

Ice Break will launch Ice Break No Sugar Added Espresso 500ml in April. In the kids’ segment, Pauls will introduce licensed characters from children’s show, Bluey, to its range of kids flavoured milk pop tops. Available in chocolate and strawberry variants, the Pauls kids flavoured milk 250ml range features 30 per cent less sugar and no artificial flavours or sweeteners.

There are also new additions to the range for Lactalis’ regional brands. Queensland’s Breaka will bring back Caramelicious in both 500ml and two-litre pack sizes. In NT, Pauls Iced Coffee will release a No Sugar Added 600ml variant.

COVID HIGHLIGHTS VALUE OF HOMEGROWN BRANDS Riverina Fresh is a regional milk supplier in New South Wales, with an award-winning range of flavoured milk products including chocolate, strawberry, and iced coffee.

• Flavoured milk grew by 6.9 per cent in P&C in the latest quarter • Flavoured milk is the second highest category within total impulse RTD, accounting for 26.4 per cent of national spend on drinks • 40 per cent of flavoured milk purchases are unplanned • 74 per cent of volume sold is on promotion • Incorporating a secondary location will drive a 30 per cent uplift in sales

April/May 2021 | C&I | www.c-store.com.au 27

FLAVOURED MILK

From the market research we have done, we’re seeing that brand is less crucial, and consumers make their decisions on repeat buying based on what the product tastes like.”

– Rob Collier, CEO, Riverina Fresh

The 100 per cent Australian-owned dairy company supplies throughout the Riverina and Albury Wodonga and is currently engaging with the P&C channel on its flavoured milk range.

PLACEMENT AND PROMOTIONS

“We are a niche regional brand with a loyal following, particularly for our chocolate milk,” explains Rob Collier, CEO of Riverina Fresh.

Wright advises point of sale material to be placed at the point of purchase to showcase combo deals as well as drive brand and product awareness. She adds references to deals at both milk locations and chocolate bar locations in-store will also assist to drive to brand association and awards.

“Our customers tell us that they would love to be able to get our chocolate milk more widely, which has led us to engage with the P&C channel.”

To maximise performance of Robern Merz and Bickford’s Violet Crumble Chocolate Honeycomb flavoured milk, retailers should aim to leverage the brand equity of the Violet Crumble trademark.

Riverina Fresh’s chocolate flavoured milk, which is currently available in supermarkets and independent retailers, is a multiple award winner at the Dairy Australia Awards and recently won a gold medal at the Royal Easter Show Dairy Awards.

“This is a well-known popular and widely recognised brand that will help to extend brand reach when placed in conjunction with the milk,” Wright told C&I magazine, adding combo deals that leverage the Violet Crumble chocolate products, such as a deal with a 500ml milk and a 50g chocolate bar, is another way to maximise performance.

Riverina Fresh’s chocolate, strawberry, and iced coffee are available in 300ml, 500ml, 600ml, and two-litre formats, in both full cream and lite.

According to Collier, market research conducted by Riverina Fresh has found taste remains consumers’ primary purchase driver for the flavoured milk and iced coffee categories.

“From the market research we have done, we’re seeing that brand is less crucial, and consumers make their decisions on repeat buying based on what the product tastes like,” said Collier. He said the dairy industry has also witnessed increased support for locally owned brands in the wake of the pandemic.

“Across food, and certainly across dairy, consumers are supporting more regional and Australian-owned brands.

Consumers are more interested in buying premium quality while supporting Australian manufacturing and employment.

“COVID brought to the fore gaps in the supply chain, which has now raised awareness about where products, particularly food products, come from. It also raised awareness on the direct link to employment. I think people have a greater desire to understand and support local manufacturing and local employment.”

28 April/May 2021 | C&I | www.c-store.com.au

Visibility is also crucial for capitalising on impulse purchases.

As Dickeson explains: “Almost 40 per cent of purchases are unplanned and given milk is typically fresh and needs to remain in the fridge, visibility is key whether it be POS on the forecourt or incorporating a secondary location, which will drive a 30 per cent uplift in sales.”

In terms of segmentation, ‘rainbow’ is the most expandable category.

“Keep at eye level and stock a range with variety,” advises Dickeson.

“Iced coffee is the largest segment across the day and is more planned – ensure multiple facings of key selling SKUs to avoid out of stock. Kids, meal replacement, protein, and lactose free are smaller in value but hugely incremental to the rest of the range.”

It is also vital to get promotions right. “While flavoured milk has around 74 per cent of its volume sold on promotion, it remains the highest average sell price in the fridge – promotional tie in and visible promotional tickets and POS are crucial given the impulsive nature of the flavoured milk category.” C&I Convenience & Impulse Retailing would like to thank Lactalis Australia, Nippy’s Fruit Juices, Robern Menz, and Riverina Fresh for supplying information for this article. *IRI Aztec Scan Convenience channel total impulse beverages value MAT to 27/12/2020

LE IL AB APR AIL H AV 26T M FRO

BOLD & CREAMY SMASH THIS

Blind tastings revealed an exceptional rounded roasted coffee taste that was preferred by 71% of consumers* Dark packaging conveyed bitter and strong coffee perceptions which was in contrast to the outstanding taste** 3 coffee shots limits number of consumption occasions** *July 2020: Accredited Third Party Blind Taste Test. **Aug 2020: Third Party National Quant Study.

PRODUCT NAME

STATE

PACK SIZE

EAN

Ice Break Bold Espresso Iced Coffee

QLD

500mL

9310036070337

Ice Break Bold Espresso Iced Coffee

QLD

750mL

9310036070344

Ice Break Bold Espresso Iced Coffee

VIC/NSW/SA/WA

500mL

9310036073352

Ice Break Bold Espresso Iced Coffee

VIC/NSW/SA/WA

750mL

9310036073369

For more information please contact your Lactalis Australia Pty Ltd Representative Lactalis Australia Pty Ltd, 35 Boundary Street, South Brisbane QLD 4101 Phone: 1800 000 257 Fax: 1800 335 188 Email: sales@au.lactalis.com

PRODUCT RANGING

Ruffie Rustic Foods meat-free and plant-based Chicken-ie Schnitzel In Australia, and in fact globally, there has been a rapidly growing trend towards people choosing to either reduce or eliminate meat from their diets.

Research from YouGov found that nearly half (49 per cent) of Australians are interested in cutting down their meat consumption for health or sustainability reasons. And it’s for this reason that we’ve chosen a plantbased product for our C&I Choice winner in this issue.

In October 2020, Patties Foods reimagined an Aussie pub classic, launching a 100 per cent plant-based ‘Chicken-ie Schnitzel’ under the Ruffie Rustic Foods brand.

Within months of launch, the Chicken-ie Schnitzel skyrocketed to become the brand’s highest selling meal, with almost 100,000 units sold following just 20 weeks in market.

The delicious plant-based Chicken-ie Schnitzel comes in a ready-made, frozen meal complete with al dente penne in a Pomodoro sauce of vineripened tomatoes, capsicum and zucchini.

“Whether you’re a vegan, vegetarian, flexitarian, or just simply wanting to try something new, Ruffie Rustic Foods is all about promoting a healthy, balanced lifestyle with an emphasis on progress not perfection,” said Anand Surujpal, GM of Marketing and Innovation at Patties Foods.

“With this new flavour, we want to treat our customers to the classic flavours they love, in a modern and convenient way.”

The entire Ruffie Rustic Foods frozen range is available in the freezer section of Woolworths and select independent grocers and petrol as well as convenience retailers right around the country.

Iconic Allen’s Frogs Alive are now supercharged with surprising sourness The team at the iconic lolly brand Allen’s are launching Sourz Frogs Alive bringing a new twist to a classic lolly.

Following on from the tongue twisting success of Allen’s Sourz Snakes and Sourz Tangy Randoms, the team at Allen’s have taken their iconic red frog and given it a sour twist.

The new Allen’s Sourz Frogs Alive have no artificial colours and hit with a burst of sour, tangy flavour at first bite, followed by a deliciously dazzling raspberry flavour.

Nestlé Head of Marketing Confectionery Joyce Tan says: “We know how much Aussies love Allen’s Frogs Alive and that sour lollies are a trending flavour profile among lolly lovers. We thought we’d combine the two and create something we know our customers will love.

“Allen’s Sourz Frogs Alive also follow the success of Sourz Tangy Randoms and Sourz Snakes Alive so we’re excited to see the reaction on our customer’s faces once they taste how sour they really are.”

Available in select convenience stores from April 2020, Allen’s Sourz Frogs Alive come in both a 170g and 58g bag format, to fulfill both on-the-go and sharing occasions.

30 April/May 2021 | C&I | www.c-store.com.au

PRODUCT RANGING

Purina Supercoat launches convenient 1.5kg pack size The market leader in dry dog food, Purina Supercoat, is now available in a convenient 1.5kg pack format.

The pet care category has been growing and 2020 saw an acceleration of that growth, with many Australians seeing lockdown as a great opportunity to adopt a new puppy or kitten.

During this time there has also been a trend towards premiumisation, with pet owners being inclined to spend more on products that they know are made with ingredients that provide better health benefits for their pet.

Coral Grace, Senior Business Manager Independent Grocery & Impulse, Nestlé Purina Petcare, said: “The pet care category has been growing year on year. Pets today are a much-loved part of the family and we see that pet owners are spending more money on their animals.

“COVID-19 has positively impacted the category as well.

We saw an acceleration of the category that has sustained due to new pet acquisition. For families with everyone working from home it was a great opportunity to do puppy and kitten training and for anyone that was living alone, they’ve found having a new pet to be great company. This trend increased baselines and now we’re seeing really good growth of about eight per cent on the last MAT.” Grace also highlighted that it was identified that a staggering 46 per cent of pet purchases were being made as a planned top up purchase.

It’s with this in mind that the brand has decided to launch a new convenient sized 1.5kg pack format to cater to those top up shoppers.

32 April/May 2021 | C&I | www.c-store.com.au

PRODUCT RANGING

“Because it is the number one selling dry dog brand in the market, we identified a need to be able to provide a smaller pack size to meet the needs of those convenience shoppers.

Dry dog food typically comes in a really big bag, which isn’t very convenient for the small format channel,” she said.

Until now, Supercoat has only been available in larger pack formats that are better suited to the grocery channel (3kg, 7.5kg, 12kg, 18kg) and the brand has grown to have a 33 per cent value share of total dry dog food through that channel (Nielsen Scan Grocery Data Australia MAT to 6/12/2020).

“Over the last couple of years, it has become apparent that we’re seeing a need for pet food in the convenience channel,” said Grace.

“We’re hearing from retailers and distributors that people want more relevant pet care products when they are doing their top up shops and that’s why we definitely felt the need to come up with a smaller pack size.”

Grace said that as the number one selling dog brand, shoppers can feel confident that they are getting a high quality product when they need to do a quick emergency top up of dry dog food.

Supercoat is an Australian made product made with Smartblend technology with a tailored blend of nutrients that help to maximise whole body health for dogs. The formula precisely combines quality protein with natural ingredients to deliver the precise nutrition that a dog requires.

“We now feel confident that shoppers will be able to top up with their favourite dog brand quickly and easily through the convenience channel.”

The 1.5kg Purina Supercoat packs have initially launched in the brand’s top selling flavour, beef.

“While we do have many flavours in the bigger pack formats, for now we’ve decided to launch just with our number one selling flavour. As a top up purchase, shoppers would be purchasing one bag only so we are sticking with our top selling beef flavour.”

The 1.5kg Supercoat NPD will have an RRP of $10 and the launch is being supported with an above the line marketing campaign on television and social media.

This product is widely available across the Metcash network and The Distributors and will be hitting warehouses from mid-April.

Because it is the number one selling dry dog brand in the market, we identified a need to be able to provide a smaller pack size to meet the needs of those convenience shoppers.”

– Coral Grace, Senior Business Manager Independent Grocery & Impulse, Nestlé Purina Petcare

April/May 2021 | C&I | www.c-store.com.au 33

C H D O E C& T L A S WHITE CHOC

IT’S NUT WHAT YOU EXPECTED New

PRODUCT RANGING

Chobani adds new flavours to 907g multi-serve tub range Chobani has added two new flavours to its 907g multi-serve tub range including Mango and Passionfruit.

Julia Clark, General Manager Sales & Category, Chobani Australia, said that the impact of COVID-19 saw a shift towards larger tub formats in the yoghurt category.

“We saw significant growth in the 907g range during March and April 2020. This coincided with most nationwide lockdowns, which showed us a correlation between people spending more time at home and enjoying the multi-serve tubs with their family.

“This trend has continued to remain strong into 2021 and we are excited to bring more variety to this category.”

The Mango and Passionfruit 907g tubs will join the existing range of Plain Low-Fat, Plain Whole Milk, Vanilla Low-Fat and Strawberry Blended LowFat Greek Yoghurt.

Introducing Famous Cola Famous Soda Co has added to its lineup of carbonated beverages with the release of Famous Cola, a better for you cola alternative.

The Famous Soda Co team spent 12 months creating, testing and tasting hundreds of recipes to achieve a refreshing tasting cola with fewer nasties.

Michael Pillon, CEO, Famous Soda Co says: “We heard our customers and we answered. Sometimes you just need, even crave, that refreshing taste of cola so we set out to make a better for you version that’s a healthier, natural, zero sugar alternative. Heaps of hours and a lot of love went into getting this just right.”

The flavour profile is bursting with tiny bubbles of vanilla and cinnamon that delivers the natural sweetness that’s expected from a great cola. Then there’s an extra zing with overtones of citrus oil, ginger, and cassia. Together they create an unforgettable flavour celebration.”

Famous Cola is an addition to the existing portfolio of Pink Lemonade, Passionfruit, Blood Orange, Lemon and Ginger Beer.

36 April/May 2021 | C&I | www.c-store.com.au

Sour Patch Kids unveils new Berry flavour Market leading sour candy, Sour Patch Kids, has launched a new berry flavour sensation full of sour then sweet goodness.

Each pack of Sour Patch Kids Berry contains three delicious berry flavours including blue raspberry, blackcurrant and strawberry.

Fun, soft and chewy, the latest Sour Patch Kids iteration comes in 170g and 220g packs, and is available nationally in major supermarkets, independent retailers, and 7-Eleven stores.

“Sour Patch Kids is the sour candy category ringleader in Australia, and with the arrival of three deliciously appealing Berry flavours in one bag, this launch is set to further bolster the brand’s sour (patch) domination,” the brand said in a statement.

VGood launches across Australia VGood is a new range of nut-free spreads and snacks that has recently launched into stores across Australia.

The ‘Veggie Good’ Australian label was created by mum and entrepreneur, Sally Breden, to meet the demands of healthy, lunchbox safe options for both children and adults.

VGood’s PeaNOT Butter and HazelNOT Choc Spreads are made using chickpeas without nut-based or allergy triggering ingredients.

The complete range also includes VGood’s Chickpea Twists in Smokin’ BBQ, Sea Salt and Tomato Basil.

VGood already has ranging across IGA, Ritchies, Drakes and other independent retailers, but founder Breden is looking to make them even more easily accessible.

“The next goal is to ensure VGood is easily accessible to everyone who needs this kind of alternative, and that means being stocked by more forward-thinking retailers.”

CONTACT YOUR INGHAM’S REP TO FIND OUT MORE

PRODUCT RANGING

Drive winter sales and treat everyday sore throats with SOOTHERS

With summer officially over, cold and flu season is quickly approaching so it’s time for convenience retailers to start thinking about how to maximise sales of their medicated offerings.

Nestlé is the market leader in the convenience channel, with medicated sales accounting for more than 78 per cent of category value according to Nielsen (AC Nielsen AUS Convenience MAT to 10/01/2021).

With a variety of leading brands, the Nestlé single sticks portfolio is worth almost $5 million in the petrol and convenience channel, with SOOTHERS and ANTICOL as the first and second leading brands respectively (AC Nielsen AUS Convenience MAT to 10/01/2021).

Of that $5 million in value, SOOTHERS BUTTER MENTHOL, ANTICOL and SOOTHERS Blackcurrant sticks hold the top three positions, collectively driving close to $4 million of value (AC Nielsen AUS Convenience MAT to 10/01/2021).

Therefore these three variants should be a key consideration for retailers within the petrol and convenience channel and should be ranged and positioned in an area of high visibility to drive sales.

38 April/May 2021 | C&I | www.c-store.com.au

“The winter period is a key season to drive impulsive medicated stick sales in-store, by partnering for every day ‘on-the-go’ occasions, with the stick format key in attracting new and lighter users,” said a Nestlé spokesperson.

Temperature change is a key trigger for mild sore throats and the first signs of sickness during the period from May to August typically drive an uplift of 44 per cent on sales across the Nestlé portfolio (AC Nielsen AUS Convenience February 2019-February 2020).

“The key opportunity is to drive impulse sales throughout winter by off locating Nestlé medicated offers to drive visibility and conversion in-store.

“The Nestlé medicated portfolio has many offers across differing need states and levels of sore throats, whether that be comforting relief, relieving a dry sore throat or soothing relief plus fast acting ingredients,” says the Nestlé spokesperson.

So with winter just around the corner and the cold and flu season approaching it’s time for petrol and convenience retailers to get in touch with their Nestlé representative and start thinking about the ranging and positioning of medicated products within their stores.

PRODUCT RANGING

Introducing the deliciously smooth taste of Nescafé now in a can!

Nescafé has launched into the ready to drink category with three canned iced coffee varieties available nationally from April.

Nescafé is the number one retail coffee brand in Australia with a strong heritage dating back to the 1930s. The iconic brand has grown a cult following with research showing that 98 per cent of Australians are aware of Nescafé and one in two households regularly purchase it.

This is evident through the brand’s results in 2020, where it delivered more than $300 million in sales, a growth of 5.4 per cent on the previous year.

According to the CMA Shopper Report August 2020, the number one mission in a convenience store is to buy a drink, and this has seen the iced coffee category continue to grow year on year.

The RTD iced coffee segment is growing at 4.9 per cent with small format (250ml-375ml) in particular bringing new shoppers into the category as they significantly over index in driving trial.

With that in mind, and with Nescafé’s already established brand credentials across a variety of formats, there is huge category opportunity for Nescafé to expand into the iced coffee RTD space.

Nescafé iced coffee cans are available in Espresso, Flat White, and Mocha flavours in 250ml cans.

40 April/May 2021 | C&I | www.c-store.com.au

“Nescafé launching into iced coffee RTD is a huge opportunity to grow the iced coffee segment further as we will be the first brand to bring existing coffee credentials to the RTD category,” said Lauren Mann Marketing Manager – Ready to Drink, Nestlé.

“Nescafé is uniquely positioned compared to competitors.

The iced coffee RTD category has traditionally been dominated by coffee flavoured milks that ‘fill me up’ whereas a new subcategory of real coffee in a can is forming, as 76 per cent of shoppers are looking for an iced coffee RTD to provide an ‘energy boost’ or ‘thirst quench’ (FiftyFive5 Consumer Tracker Research 2020).”

While the Nescafé brand is already a staple grocery item in most homes across Australia, the newly launched canned iced coffee variants will open the brand up to a wider demographic.

“All life stages are drinking RTD iced coffee but current brands over index in targeting youth,” says Mann.

“The Nescafé brand will drive appeal to a wider demographic and drive category penetration by appealing to a variety of age profiles. And Nescafé’s prior coffee credentials will bring credibility to the new segment.”

The launch will be supported by a huge above the line campaign to drive awareness that Nescafé is now available in a can.

FLAVOURS INCLUDE: Nescafé Espresso: A rich, full bodied coffee hit Nescafé Flat White: Deliciously smooth and creamy Nescafé Mocha: Bold coffee with a decadent chocolate flavour

PRODUCT RANGING

Get the inside scoop on the cool new Allen’s Ice Pops and Sorbet Cones

Nestlé has launched two new flavours of Allen’s lollies inspired by the classic tastes of an Australian summer.

Whether you’re an ice pop or a sorbet lover, Allen’s has you covered. Allen’s Ice Pops has taken the classic ice block flavours of raspberry and lemonade and reimagined them into lollies.

Allen’s Sorbet Cones features flavours of lychee, summer berry and tangy lemon, shaping them into a bite-sized sorbet cone. Both Allen’s Ice Pops and Sorbet Cones are made with no artificial flavours.

Nestlé Head of Marketing – Confectionery Joyce Tan says the new lollies from Allen’s bring the classic taste of summer to Australians all year round.

“We hope that our new Allen’s Ice Pops and Sorbet Cones help bring back those nostalgic memories of summer that always make us smile – until we’re able to enjoy the next one,” says Tan. Allen’s Ice Pops and Sorbet Cones have been available in Coles from 1 March, in Woolworths and independent stores from 15 March, and convenience stores from April with an RRP of $2.95.

Fans inspire three limited edition OAK flavours Australia’s favourite flavoured milk brand, OAK, will be launching three delicious new limited edition flavours created by OAK fans as part of the successful OAK Flavour Generator campaign.

In January, OAK invited the Australian public to bring their favourite full-on flavour combo to life at oakflavourgenerator.com.au – including giving their OAK flavour a catchy name, personalising their carton colour, and sharing the backstory behind their custom OAK mix. From tens of thousands of entries, three finalists were selected and their flavours will be brought to life and sold in supermarkets and convenience stores around the country from late April.

The three flavours chosen will feature their inventor’s faces proudly printed on the cartons, as well as in advertising to promote the flavours launched. Choose your favourite and watch sales grow from 26 April.

42 April/May 2021 | C&I | www.c-store.com.au

Helping customers make more sense of your store, makes more profit!

Bigger basket sizes, profitable stores and repeat customers are no accident – it all starts with a plan.

UCB’s planograms (POGs) are designed with your customers and key product lines in mind - to maximise your basket size.

3 reasons why a choice of over 230 Industry driven POGs is the only choice that makes sense: more variety, more choice, more options.

1

2

With over 230 POGs available, the perfect layout for your display space, range and customers is easily accessible via our website.

The right POG means better inventory management and product configurations that perfectly suit your store.

3 Maximise sales opportunities across your key categories, by selecting from a wider range of POG configurations.

We understand independent retail, shoppers and what it takes

to bring them together. We work closely with our Trade Partners

to deliver this, so our Members receive the benefits.

UCB planograms - your store, your stock, your way.

Talk with your representative about getting the most out of your planograms today Tel: +61 2 9899 4800 Email: info@ucbstores.com.au www.ucbstores.com.au Disclaimer: planograms and hardware sizes are guides only, please consider your store’s requirements when comparing UCB POGs.

PRODUCT RANGING

Zefir Disposable Vapes available through the P&C channel and tobacconists channel ICT Group (formerly InterContinental Tobacco), has expanded its product lines to include vapes and e-cigarettes, which are now available through the petrol and convenience (P&C) and tobacconists channels.

Zefir Disposable Vape is available in six flavours, including menthol, tobacco, berry, peach, mango, and watermelon. It is packaged in six-unit cartons, and retails for $12.95 per unit.

The world’s most respected and accredited manufacturing companies produce ICT Group’s products, each of them uphold every compliance and regulatory requirement including ISO 9001 and GMP Certification.

The Zefir disposable vape has an ultra-compact lightweight design, and each unit contains 300 puffs per vape (with zero per cent nicotine).

“We are proud to be at the forefront of innovation when it comes to introducing potentially reduced-risk alternatives to tobacco and nicotine products,” said ICT Group’s spokesperson.

“This is an evolving trend that is on the rise. Vapes and e-cigarettes have traditionally been purchased from specialist vape stores. However, our goal is to bring our products to the mainstream for all P&C retailers and tobacconists and to become a main point of purchase product for their customers.

“Our market leading disposable vapes deliver an evolution to vaping that is reliable, affordable, 100 per cent compliant

with the Australian Government’s Department of Health restrictions and has been receiving positive feedback from users.

“ICT Group uses a state of the art purchasing and selling system which helps streamline the entire process for our customers, from purchase right through to delivery. With the industry’s strictest quality control methods and testing built into every step of our manufacturing process, we are confident in the high-quality levels of our products.”

Zefir Disposable Vapes are currently ranged in more than 2,000 retailers nationally, and with the popularity of vaping on the rise, this is expected to increase.

“According to a recent Government study published, it estimated that there are currently over 500,000 vape users in Australia. In 2016, the same study estimated that there were just over 240,000 vape users in Australia.

“Out of these numbers, it is estimated that 30 per cent of vapers prefer zero per cent nicotine. These include users who are social smokers, occasional smokers, and former smokers.

Vaping is on the rise in Australia, and this is a trend that is only continuing to grow.”

For further information please visit ictgroup.net.au or call 1300 859 962.

Give your signange a facelift with Fujivision powered by Fujifilm When it comes to digital signage, Fujivision, powered by Fujifilm, can provide fully customisable solutions tailored to the differing needs of every business.

Currently working with customers such as Vodafone, Puma Energy and The Dunn Group, Fujivision offers fully integrated end-to-end solutions from installation of digital signage right through to ongoing training and support.

“Fujivision provides you with everything you need to get set up and running and to stay visible,” says Anthony Irwin, Product Manager, Fujifilm.

“As well as providing digital signage, Fujivision can also implement audience analytics with your solution, which captures key information about your signage audiences including demographics, mood, reaction and how long the customer views the message.”

This technology allows business owners to better understand their customer and to measure deeper insights into the types of customers that are engaging with specific content.

“Fujivision can help you measure which pieces of content are performing the best, so that you can tailor your content to deliver the right message, to the right customer, at the right time,” says Irwin.

“The content management system used by Fujivision is cloud-based, allowing for smaller in-store hardware, and centralised content updates. Instead of sending out printed POS to each store, updates to the digital screens can be made from one centralised location, saving you time and money.”

Fujivision products include: • Front of store display screens • Digital LED signs • Outdoor signage • Video walls • Advertising screens • Digital menu boards Fujivision can help to: • Save time and money when it comes to updating prices or your latest promotion

44 April/May 2021 | C&I | www.c-store.com.au

• Increase footfall by placing digital screens on the outside of your store • Boost basket value by using screens in-store promoting key offers • Keep customers entertained and engaged – news, weather, traffic updates, in-store promotions For more information visit Fujivision.com.au or contact ffau.fujivisionsales@fujifilm.com.

OPINION

STEPHEN WILSON

KNOWING YOUR SHOPPER

Category & Insights Manager, Strikeforce

How can convenience store operators make their store a destination rather than just an option?”

Stephen Wilson, Category & Insights Manager at Strikeforce, discusses ways in which convenience retailers can continue to attract new shoppers post the COVID driven growth of 2020.

M

uch has been reported in trade and general media about households having intermittent access to essential goods this time last year and the vital role the convenience channel played during a turbulent 2020.

Basic food stuffs were sometimes only available at the local convenience store as the major supermarkets grappled with supply chain issues and empty shelves.

Maintaining a healthy supply chain, ensuring on shelf availability and meeting elevated demand were all challenges that were met head on by convenience retailers.

The warp speed of change to ‘day-to-day’ operations and seismic market shifts that were forced upon convenience retailers left little time to understand who these new customers coming through the store entrance were and why they suddenly appeared.

Convenience stores experienced artificially inflated growth for some categories, which will be difficult to replicate in 2021 with households reverting to pre-COVID behaviours coupled with increased demand for click-andcollect or online ordering and delivery services.

Cycling COVID driven growth in 2021 provides a major challenge for convenience stores.

Smaller format supermarkets with product ranges driven by demographics to cater for particular shopper clusters are appearing across CBDs and inner suburbs of our major capital cities resulting in channel blurring and increased competition.

So how can convenience stores compete and look to drive growth?

And how can convenience store operators make their store a destination rather than just an option?

The key is to identify and seek to understand their existing customer base.

• Who are they?

• How often are they shopping the store?

• When do they shop?

• What are they buying?

• What is the shopping occasion?

46 April/May 2021 | C&I | www.c-store.com.au

• Are they mission focused or are they open to persuasion?

Continual range evaluation considering prevailing trends will help to deliver a range that continues to satisfy existing customers while attracting new shoppers.

Every shopper is unique making it difficult to please everyone, however there is value in clustering shoppers into defined groups and catering to their needs.

This need not be an exhaustive exercise with the best information often coming from simply engaging with and seeking feedback from regular shoppers or engaging with suppliers, merchandising partners or market research organisations.

Having a clear understanding of your shopper base will assist in deciding what to range, when to range it and how to best engage with the shopper through aligning in-store activations – right product, right range, right time.

So, what could this look like?

Households and individuals are focused on holistic health and wellbeing with dietary intake playing a larger part in their overall strategy.

Many convenience shoppers are time poor and seek easy meal solutions at different times of the day.

They seek out healthier choices that may include plantbased meats, alternative milk, low/no sugar or foods with functional benefits.

Developing and rotating a meal offer bringing together health, convenience and time saving that caters for breakfast, lunch and dinner occasions could not only drive an increase in foot traffic but generate incremental sales from other categories.

Focusing on a ‘hero’ category for a time is a good starting point to attracting new shoppers, retaining existing shoppers, getting them to shop more frequently, increasing their spend per visit or all of the above.

Regardless of the strategy adopted understanding your customers and delivering to their motivations will attract and convert new shoppers to loyal customers and continue to drive future growth. C&I

INDUSTRY NEWS

BRETT BARCLAY APPOINTED AS CHAIRMAN OF THE DISTRIBUTORS The Distributors have appointed Brett Barclay as its new Chairman, replacing Theo Foukkare who recently accepted a new role as CEO of AACS.

A

USFEC (The Distributors) has announced the appointment of Brett Barclay as its new Chairman, following the resignation of Theo Foukkare.

Foukkare was appointed as Chairman of The Distributors in October 2020 but stepped down when he accepted a new role as CEO of the Australasian Association of Convenience Stores (AACS).

Barclay told C&I that he was looking forward to heading up the Board and playing a key role in supporting the future development of The Distributors business.

“I am delighted to be offered the opportunity as Chair of The Distributors and look forward to working with the Board, providing leadership, and acting as an important link between the board and management.

“I have provided industry insights to The Distributors for many years and know they are passionate about improving their business, so I look forward to supporting them in their endeavours,” he said.

A statement issued by George Tsapoutas, General Manager, The Distributors, welcomed Barclay to the Board, and provided some insights into his credentials.

“Brett Barclay is a founding director of Convenience Measures Australia (CMA) – a business focused on providing research, insights and support to the convenience channel in Australia.

48 April/May 2021 | C&I | www.c-store.com.au

I have provided industry insights to The Distributors for many years and know they are passionate about improving their business, so I look forward to supporting them in their endeavours.”

– Brett Barclay

“Brett has over 25 years of experience in the impulse channel and previous to his role at CMA, worked for both PepsiCo and Cadbury Schweppes.

“Brett presents his channel insights regularly as an industry speaker, writes the AACS State of Industry Report and has been a Non-Executive Director of the Australasian Association of Convenience Stores (AACS) since 2008.

“In 2019 Brett became the Regional Representative in Australia & New Zealand for NACS. “Please join me in welcoming Brett to the Board of The Distributors; I look forward to working with Brett.”

Barclay officially took over as Chairman of The Distributors on 25 March. C&I

BUY PRICE $50 RRP $125 Get $125 worth of SIMs for $50.

Includes 5x $25 SIMs. Limit of two packages per store.

For a limited time while stock lasts, eligible new or current Optus Prepaid retailers can buy a discounted SIM package

25 BUCKS Mobile SIM Card + First $25 Subscription.

x5 Visit gomo.com.au

Call 1300 30 79 79 or email ppssales@optus.com.au and quote GOMO2021 to order Offer ends 31/5/21 Only available to stores that have a signed and valid PPS Retailer Agreement in place based on a valid company ABN. Items will be delivered to your store as per the terms of your Retailer Agreement. Returns policy: Please visit prepaidservices.com.au/pps-returns-policy or contact customer support on 1300 555 002.

Limit of two packages per store while stock lasts.

18475IS GOMO AWO215856 (4/21)

INDUSTRY NEWS

PROUD ICONIC BRANDS RETURN TO AUSSIE HANDS Bega’s acquisition of the Lion Dairy & Drinks business has seen some much loved and iconic brands return to Australian ownership.

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ega Cheese Limited (Bega) has a long and uniquely Australian history that all started with humble beginnings in dairy when it was founded in 1899.

Australian-owned and operated, Bega produces, markets and distributes a wide range of high-quality products for domestic and international markets, including some of Australia’s most iconic and loved food brands and products.

The Bega name stands for quality and integrity and is synonymous with Australian values.

Bega continues to focus on its role as the great Australian food company – building a dairy and food business capable of servicing customers and consumers with high quality products from dairy and agriculture regions in Australia.

In January 2021, Bega completed its acquisition of the Lion Dairy & Drinks business. The completion of the acquisition marks the official return of wonderful brands such as Dairy Farmers, Dare, Pura, Farmers Union, Masters, Big M, Daily Juice, The Juice Brothers and Berri, to Aussie ownership.

They join loved Bega brands including Vegemite, Bega Peanut Butter, Simply Nuts, Zoosh Dips, Zoosh Dressings and Mayonnaise, Farmers Table Butter and Picky Picky Peanut Oil.

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When the completion of the acquisition was announced, Bega Chairman Barry Irvin said: “We are delighted to return these iconic brands to Australian hands. This is a great moment for Bega, and we couldn’t be more excited for such treasured brands to officially join the Bega family.”

Bega is excited about its future, with its operations growing from eight manufacturing sites across three states to 20 manufacturing sites (plus a joint venture) across six states and one territory – New South Wales, Victoria, Queensland, South Australia, Tasmania, ACT and Western Australia.

“Bega has been working hard to create a great Australian food company, and in addition to acquiring such great brands, we look forward to welcoming a large and talented team into our business,” said Irvin.

In 2017, Bega returned Vegemite, a national icon, to Aussie ownership – a move widely celebrated by the nation.

Bega is extremely proud of the dairy and grocery business that it is building, which includes household favourites such as Vegemite, Bega Peanut Butter, Simply Nuts and its honey range, B Honey.

INDUSTRY NEWS

This is a great moment for Bega and we couldn’t be more excited for such treasured brands to officially join the Bega family.”

– Barry Irvin, Chairman, Bega

THE BRANDS ACQUIRED BY BEGA INCLUDE: • Milk based beverages (Dare, Farmers Union, Big M, Masters, Dairy Farmers, Canberra Milk) • Yoghurt (Yoplait, Farmers Union, Dairy Farmers, The Culture Co) • Juices (Daily Juice, The Juice Brothers, Mildura, Prima and Berri) • Cream and custard (Pura, Dairy Farmers) • White milk (Pura, Dairy Farmers, Masters, The Complete Dairy and Canberra Milk)

“We hope that Australians are as thrilled as we are that these much-loved state-based brands that they’ve grown up with, such as Masters (WA), Farmers Union Iced Coffee (SA) and Big M (Victoria) are again Aussie-owned – these great brands are returning to Aussie ownership for the first time in more than a decade,” added Irvin.

The Dairy and Drinks business, now owned by Bega, was formed through the amalgamation of some of Australia’s most celebrated food and beverage companies. Dairy Farmers and Farmers Union were founded before Australian Federation more than 120 years ago and some of the same families still supply the Dairy Farmers brand today.

Bega’s product range now includes fresh milk, flavoured milk, yoghurt, juice, cream and custard alongside its traditional dairy and grocery business.

Bega is committed to the local dairy industry and, more broadly, to making a positive contribution for the greater good. This was demonstrated by the launch of B Honey last year, a brand that supports the future of the local honey industry through its unique Purple Hive project – an initiative to support Australian honeybee (Apis mellifera) populations.

“Bega continues to leverage and evolve our core business to become a respected and successful global food business with a vision to become the great Australian food company.

“We invite you to celebrate in this great moment for our business, and what it means for Australians. Thank you for inviting our brands into your homes, and your breakfast table, each day,” Irvin said.

OUR FOOTPRINT

Bega has established a dairy, drinks and foods products business with operations now spanning all of Australia from coast-to-coast.

The home of Bega remains on the south coast of New South Wales, and its footprint now stretches north along the east coast of Australia to Sydney and the Atherton Tablelands of Queensland and then west to Victoria, Tasmania, South Australia, and Perth in Western Australia.

Bega now has 20 manufacturing plants in all states and the Australian Capital Territory, an increase of 12 plants that produce a range of milk, juice, and dairy branded products on the previous Bega footprint.

The Bega dairy farm and fruit growing supplier base has also grown following the acquisition.

“We now have a broader and stronger manufacturing base across Australia, and this will provide us with greater flexibility and security as we grow the business,” Mark McDonald, Bega’s Executive General Manager Beverages Operations, said.

OUR HISTORY

The Bega Cheese Limited story started in the 1850s when farmers in the Bega Valley of NSW began to produce and sell dairy products collectively. Rapid growth through the 1980s and 1990s has doubled the company’s production capacity and expanded its distribution network as more products were sold outside NSW. Bega has further expanded throughout the 2000s, buying Tatura Milk, Kraft Strathmerton and Murray Goulburn’s Koroit factory. The company moved into the food consumer branding grocery business buying Vegemite and Peanut Butter and the Peanut Company of Australia in 2017.

The purchase of Lion Dairy & Drinks makes Bega Cheese Limited the second largest milk processor in Australia at 1.7 billion litres per year and expands its product range, manufacturing and distribution infrastructure and brand portfolio. C&I April/May 2021 | C&I | www.c-store.com.au 51

INDUSTRY NEWS

METRO MARSDEN STORE OWNER WINS APPLE WATCH PROMOTION Praveen Sanjeeva from Metro Marsden has won an Apple Watch Series 6 valued at $599 for participating in the 2021 C&I Retailing Reader Survey.

Our priority is, and always will be, to be the most comprehensive resource for the convenience industry, and we thank our readers for their valuable insights.”

– Safa de Valois

T

he winner of the recent Convenience & Impulse Retailing reader survey promotion is Praveen Sanjeeva – store owner at Metro Marsden in Brisbane.

Sanjeeva, along with his partners, owns and manages four Metro stores in northern New South Wales and southern Queensland – Marsden in suburban Brisbane, Southport on the Gold Coast, Stanthorpe on the Queensland and New South Wales border west of the Gold Coast and Ballina in the Northern Rivers region of Northern New South Wales.

C&I Publisher and Commercial Director, Safa de Valois, presented Sanjeeva with the Apple Watch recently at the Marsden store – which has been performing strongly since it was opened eight months ago during COVID. Sanjeeva said he was a regular reader of C&I Magazine as the owner and operator of his stores. He also said the magazine was re-circulated to the 12 staff members of his Marsden store who can read it while operating the business 24 hours a day, seven days a week.

“I always read C&I Magazine. I go through it to understand all the new things in the market and what is doing well. As the person responsible for ordering new products for my store, I definitely need to read it, as it helps me see when the latest products are coming to market, and I use it to work with the sales representatives so that I can range these products in my store. If I don’t have the products, then I call the companies and ask when I can stock them.”

C&I Publisher and Commercial Director, Safa de Valois was impressed by the survey feedback and said that the results would help C&I to continue as the leading source of news for the convenience and impulse industry.

“We were overwhelmed with the number of convenience retailers, suppliers, and manufacturers that responded to our reader survey. We’d like to thank everyone who took the time to participate.

“Our priority is, and always will be, to be the most comprehensive resource for the convenience industry, and we thank our readers for their valuable insights.”

The survey asked respondents to identify what they saw as the most valuable part of C&I Magazine and C&I Week News. Overwhelmingly the response was that our readers love our Product Ranging, Face Times and Store Reviews.

“We have taken your feedback on board and will make sure that we are giving you more of what you want to see in 2021,” Safa de Valois said.

“Thank you once again and congratulations to Praveen Sanjeeva for winning the Apple Watch Series 6 valued at $599 – we hope you enjoy it!” C&I 54 April/May 2021 | C&I | www.c-store.com.au

Praveen Sanjeeva and Safa de Valois

INDUSTRY NEWS

AACS WOMEN IN CONVENIENCE EVENT HIGHLIGHTS THAT FROM CHALLENGE COMES CHANGE T

The recent AACS Women in Convenience event was a great success with keynote speaker Laura Piccardi delivering practical strategies on how to manage the real life pressures that we face every single day.

he Australasian Association of Convenience Stores (AACS) has hosted its first Women in Convenience event for 2021 with more than 110 people attending.

The virtual event was held in conjunction with International Women’s Day (IWD), a global day to celebrate the achievements of women and mark a call to action for accelerating gender parity.

This year the IWD campaign theme was ‘Choose to Challenge’ as explained on the official IWD website: “A challenged world is an alert world. And from challenge comes change. So, let’s all #ChooseToChallenge.”

In line with this theme, AACS invited Stress Management Expert and Personal Performance Coach Laura Piccardi to be the keynote speaker.

Piccardi shared her own personal experiences of reaching the burnout point after her gym business was burnt to the ground. She highlighted the key signs of identifying that you are over-stressed and said that by identifying these key stress indicators we can take a step back and challenge ourselves to recentre and continue moving forward.

“Breathe, meditate, set boundaries,” was the advice Piccardi gave.

“Change happens through consistency. Do what you love, eat calm and eat well, move according to what you need,” she said.

Piccardi gave the advice of allowing yourself time throughout the day to do something that you love. Doing this allows you to let go of anything that is stressing you out and give you a chance to reset.

The same goes for eating calmly. Piccardi suggests giving yourself even just 10 minutes of quiet time away from your phone and any other distractions to just eat calmly, to help you with digestion and to overcome any stressors that you might be experiencing.

“I like to think of health as an investment,” she said.

After speaking about the physical elements of stress Piccardi turned to the mind and understanding our mental blueprints.

“Our thoughts literally create our reality,” she said.

Piccardi demonstrated how we can better understand our mental blueprint and focus on being ourselves more.

She said that focusing on what our core goals are rather than what we think they should be, will allow us to align our behaviours to our thoughts and truly be ourselves.

“Be you,” was her core message.

“If we literally imagine and construct what we want in our internal world, our brain is going to believe that and recreate it in our external world.

“When you operate from that space is when you truly have the power to choose to challenge and choose to change,” she said.

Laura Piccardi was the keynote speaker of the first AACS Women in Convenience event for 2021

If we literally imagine and construct what we want in our internal world, our brain is going to believe that and recreate it in our external world.”

– Laura Piccardi

AACS CEO Theo Foukkare, said the event was a great success and thanked Laura Piccardi for sharing her experiences.

He said: “Laura delivered practical strategies for us all to manage real life pressures that we face every single day, at home, in the office or just about anywhere. I personally found Laura’s explanation of what is a very complex topic very simple to understand and will be applying some of these strategies myself.

“Thank you to all of our members who took time out of their busy schedules to support AACS Women in Convenience’s first event of 2021.” C&I April/May 2021 | C&I | www.c-store.com.au 55

INDUSTRY NEWS

THE DISTRIBUTORS CELEBRATES 40TH ANNIVERSARY The Distributors National Merchandise Manager, Andrew Johnson, chats with C&I about the evolution of the business over the past 40 years.

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he Distributors is celebrating its 40th anniversary in 2021, and to celebrate we chat with National Merchandise Manager, Andrew Johnson, about how the business has grown to have 34 sheds and more than 47,000 active customers across Australia.

AT A GLANCE: THE DISTRIBUTORS • 26 members • 24 shareholders • 34 warehouses • National support office • Centralised systems • Operating for 40 years • 47,000 active customers

C&I: How has The Distributors evolved over its 40-year history?

AJ: The Distributors began when five individual members came together to form a group that would enhance their buying power and create an entity where they could go to a national distribution model.

The Distributors is made up by various individuals who own their own businesses, having often started with very small sheds (in backyards and garages) to having grown with us over the journey and reinvested into their businesses to enhance their skills and enhance their product ranges to deliver results for a multitude of different types of customer bases.

We’ve grown to have 34 sheds across Australia, which carry anywhere from 5,500 to 10,000 products in their

56 April/May 2021 | C&I | www.c-store.com.au

warehouses and distribute to multinational companies right through to mum and dad milk bars – it’s been a great 40-year journey.

Our strength is our individual owners and their drive and passion to distribute and supply product to as many retailers as possible. It’s their personalities that drive the growth of the group through their expertise in their businesses.

C&I: How did you combat the disruption to distribution channels over the past 12 months?

AJ: Our strength is within the petrol and convenience channel and so the business was affected significantly in the first half of COVID, but we did pivot quite well to diversify our business and so in the second half of COVID we were able to bounce back. That was through the ability to service the independent grocery channel and work very closely with them.

There were some areas where we took a significant hit, things like cinemas and the airport where we would normally do a lot of business, were just decimated.

INDUSTRY NEWS

And that certainly impacted on the members, but to their credit our members looked outside of the box and at other products, such as hand sanitiser and face masks, and tried to enhance their grocery offer. They really did an exceptionally good job at holding their own during a difficult time and delivered some really great results.

C&I: How was The Distributors performance in 2020 and how do you expect to fare in 2021?

AJ: 2021 is looking very bright for us as business rebounds and the petrol and convenience channel is starting to deliver some good results.

We are actually in line to deliver some growth into 2021 and that is through winning some new accounts and through continuing to deliver the exceptional service that we are known for.

2020 was a tough year for everybody and our greatest challenge now is getting our supply chain back to normality with containers and the shipping supply chain issues that various manufacturers have faced due to COVID. There has been a greater shift towards working with Australian based products and manufacturers that can produce products here. We’re working with all of our suppliers to really enhance that and make sure we can continue delivering results for our customers in 2021.

C&I: What will be the immediate focus for The Distributors in 2021?

AJ: To be able to provide the best possible service at the best possible price and continue building on the strong relationships that we have in place. We will also look to grow through new opportunities with new points of distribution and to work with our supply chain and our members to continue supplying our retailers in full and on time.

We’re putting together a mid-year conference from 2628 May to be held in Sydney, where we will invite all of our members to attend and celebrate the 40th anniversary and we’ll also have an online trade show for all of our retailers nationally.

Our strength is the fact that we have a national coverage with localised service.”

– Andrew Johnson

C&I: How has the convenience industry evolved over the years?

AJ: Retailers are certainly becoming far more sophisticated with their offerings and are diversifying and looking for new ways to generate revenue. These days they need to offer a full service in terms of the different product availability, whether that be a range of ‘better for you’ options be that in food or beverages, consumer expectations are certainly changing. Retailers are becoming far better at merchandising in their stores and we in turn need to make sure that we have those products available and are able to deliver them to our customers. C&I

C&I: What sets The Distributors apart from its competitors?

AJ: Without doubt it’s our service. Our strength is the fact that we have a national coverage with localised service. Each of our members around Australia are incredibly passionate about their businesses because they actually own it, and that is what sets us apart.

While we have national coverage with one price point for a national solution, it is delivered by a local entity from those independent individual business owners, and that delivers us with great results.

Also, the fact that we have more than 240 reps that can build and support customer relationships is incredibly important. That separates us and our service levels against our competitors. We can activate and execute exceptionally well for a multitude of different types of businesses.

In 2021 we will simply strive to do better, to be better, and to deliver more and exceed our customers’ expectations.

April/May 2021 | C&I | www.c-store.com.au 57

PETROL NEWS

DO PETROL STATIONS NEED AN ONLINE PRESENCE? Dan Armes from ServoPro discusses how and why petrol retailers should be investing in the digital presence of their business.

DAN ARMES Founder of ServoPro

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hen I ask petrol station owners whether they have a website, those who don’t usually say the same thing: “There’s currently no need.” While this may be an easy thing to believe, the facts show that it simply isn’t true. In today’s day and age, all small businesses can benefit from having a working, updated website and social media presence, no matter the industry they are in.

If you’ve been on the fence about building a website for your petrol station, here are some of the reasons to get online today.

1. HELP YOUR CUSTOMERS FIND YOU

We live in an online world. Much like social media, equipping your business with a website is simply one of the best ways to make sure you are engaged with your customer base.

Between computers, phones, and tablets, the average Australian spends up to seven hours a day online.

With this much time spent online, failing to put your business into the webspace is inevitably a missed opportunity to directly connect with customers. A website can help you develop your brand, build customer loyalty and engagement, and sends the overall message that you are actively engaged with the modern world of business.

58 April/May 2021 | C&I | www.c-store.com.au

2. GOOGLE CAN FIND YOU

Be it local restaurants or a place to refuel, Australians searching for a business are most likely to turn to the internet to find a business to meet their needs. If your petrol station is going to become a search result, and therefore become an option for thousands of customers in your area, you’ll need a website. Without an online presence, major search engines such as Google may as well have no idea that you exist.

Once you are online, you have a chance to show up in Google searches. This means that customers searching for petrol and service stations will be able to find your business quickly, drastically increasing your outreach and expanding your potential customer base. The more your website is visited by potential customers, the higher it will rank in search results and the wider the reach of your business will become. If your petrol station is not online, it’s a guarantee that another in the area already is, and their visibility is giving them the upper hand.

3. KEEP YOUR CUSTOMERS INFORMED

Have you struggled with keeping customers up to date and informed with changes being made at your petrol

PETROL NEWS station? Trying to figure out how to reach your customers with information about changing hours, services, or new products and promotions? A website is a 24/7 way to keep current and future customers up to date with everything happening at your service station. Not only are you given the tools to provide essential information such as business policies and hours, but you are also given a completely open platform to advertise promotional material and new products. Repeat customers will know to visit your website for updates and changes that may affect them, and you will be able to effectively convey critical information.

As the situation with COVID-19 rapidly unfolded and continues to develop, petrol stations hosting a website were given a quick and effective way to communicate policy and service changes with their website. Those without may have been forced to rely on in-store signage, or other, less effective methods of communications. In today’s world, efficacy of communication with your customers is key, and a website is the best way to accomplish it.

4. A WEBSITE ADDS CREDIBILITY

Studies have shown time and time again that consumers consider businesses with a strong website to be more credible than those without an online presence. While a social media presence such as a Facebook page can go a long way in increasing your customer engagement, having an official website gives your petrol station a more professional and legitimate appearance to potential customers. Overall, a well-maintained website is an easy and effective way to add credibility to your business, as well as give a stamp of professionalism to your service station. In a market where branding and first impressions are everything, a website is the perfect way to get a leg up.

5. SOCIAL MEDIA

Most of us know that Facebook’s reach is big. What you may not realise is exactly how big that reach really is.

Seventy-two per cent of Australians have a Facebook page, and one out of two Australians use the platform every single day. Around 16 million Australians are active on the platform at least once a month, and Facebook has an estimated 80 per cent of the market share of Australian social media. That said, there is no simpler, more effective way to broaden your petrol station’s reach than creating a Facebook page.

Unlike other forms of marketing, creating a page for your business costs no money, and is a great way to reach both current and new potential customers in your area. Facebook even enables you to collect information such as customer email addresses that can be used for monthly newsletters or promotions, meaning your petrol station can be placed repeatedly at the forefront of their mind, all at no cost to you.

6. CREATE A CUSTOMER RELATIONSHIP

Social media is all about creating relationships, and this includes small businesses. Creating a Facebook page for your petrol station means that you are creating a forum that will develop direct relationships with your customers.

People want to go somewhere they feel welcome, acknowledged, and recognised. A strong social media presence is a way to check all three of those boxes quickly.

Not to mention, it’s an excellent way to receive and field customer feedback and complaints.

Unlike other platforms, reviews received by your Facebook page can be replied to directly by the business owner. This means not only will customers feel heard, but you are able to create a lasting positive impression that can turn an unhappy customer into a return customer. Positive reviews also have a space to shine on your page and distinguish your petrol station from others in the area.

7. KEEP CUSTOMERS IN THE KNOW

With such a broad reach, a company Facebook page is one of the simplest and most effective ways to keep your customers informed. At its simplest level, you can display your hours, address, and phone number, making basic information broadly available to the general public. However, you can also use a Facebook page to inform customers about special offers or promotions you may be running.

Say, for example, a new brand of coffee or line of product has recently become available at your petrol station and you think your customers may be interested. Instead of waiting for customers to come to your business to discover what you have available, the product can become the incentive to visit. The interaction encouraged by Facebook also allows an avenue for customers to let you know what they want. Whether it’s a specific brand of product, or an idea for improvement, social media gives them the chance to let you know and keeps you up to date with what your customer base is thinking.

In today’s day and age, all small businesses can benefit from having a working, updated website and social media presence, no matter the industry they are in.”

– Dan Armes

8. HUMANISE YOUR BUSINESS

In today’s world, social media interaction is almost as good as face-to-face engagement. An online presence is not only a chance to participate in daily interaction with your customer base, but also a chance to allow your business to be more than just a brand name.

Social media platforms such as Facebook give small businesses an opportunity to create a coherent voice and image for their brand. Activity like sharing interesting or relevant links on your page not only engages your customers but allows you to paint a picture of what you want the public to think of when they think of your petrol station.

Direct posts to your page give you a chance to speak directly to people in your area, engage with them individually, and become a tangible part of their day to day lives. Creating an active Facebook page is a chance for your petrol station to humanise itself and be seen less as a corporate entity and more as a small business run by real, relatable people.

9. EVERYONE ELSE IS DOING IT (INCLUDING YOUR COMPETITION!)

The reality is that if you’re not on Facebook, it’s likely that your competition already is. All large corporate brands have a social media presence because they recognise its importance as a customer engagement tool. Any small business that is truly looking to optimise their reach and define their brand’s voice can benefit from creating a Facebook page of their own.

10. NEED HELP?

Through our ServoPro membership we are helping petrol station owners to their online presence every day, whether it is advising and helping with social media or providing free websites to ServoPro members.

If you need help establishing a strong online presence feel free to reach out for help.

April/May 2021 | C&I | www.c-store.com.au 59

If you own or work in independent grocery or a convenience store, service station, dairy, corner store or mini-mart, C&I NZ is the one event you should not miss in 2021.

SAVE THE DATES

ADMISSION IS FREE! OWNED BY:

C&I Media NZ Pty Ltd and organised by Interpoint Events Pty Ltd P: 800 455 785 E: exhibition@candiexpo.co.nz W: www.candiexpo.co.nz

Association Partner

Reconnect - Renew - Rebuild

8 - 9 SEPTEMBER 2021 Convenience & Impulse New Zealand Expo 2021 The Cloud, Auckland

The Convenience & Impulse New Zealand Expo brings together New Zealand convenience retailers and suppliers from all banners and brands to gather for two days of education, networking and business building.

For more information visit www.candiexpo.co.nz

PETROL NEWS

Ampol partners with Coates Group for national signage fitout Digital signage company Coates Group has inked a partnership with Ampol Australia to provide its external signage.

The deal follows Ampol Australia’s rebrand, which will require its external signage to be changed nationally across a network of approximately 1,900 locations.

The project is said to require more than 30 signage variations – including main identity signs, price boards, shopfront fascias, and other applications for the Ampol marks and logos.

Ampol Australia selected the Coates Group as the signage provider for the debut of the new Ampol logo and incarnation following an extensive vetting process.

Both companies said the partnership marks a momentous occasion for Ampol and Coates alike, with the rollout taking place Australia wide

and being the largest that the country’s fuel and convenience industry has seen to date.

“The opportunity for two fiercely Australian companies to work together is one that you don’t often get. For Coates to work with Ampol, an iconic brand, as it re-emerges into the spotlight is something that we’re incredibly proud of and excited about,” Coates president of A/NZ and international markets Marcus Coates said.

The project began in August 2020 with a rebranded pilot store – situated in Concord New South Wales, the state in which Ampol was originally founded in 1936 – with Coates stewarding an additional 18 store transitions by the close of the year.

The reimagined stores will be rebranded throughout 2021 and 2022, exclusively featuring Coates external signage.

BP to convert 88 NSW service stations to be renewable energy by 2023 Eighty-eight BP service stations across New South Wales will be powered by 100 per cent renewable energy from January 2023.

The renewable energy will be powered through Snowy Hydro’s West Wyalong solar farm through a power purchase agreement (PPA) with Lightsource BP. Snowy Hydro will purchase two-thirds of the 238,000MWh generated annually from the solar farm through a 15-year PPA. Under this arrangement Snowy-Hydro will in turn supply 23,000MWh of renewable energy annually, through Red Energy, to BP for 10 years to meet the power requirements of all its service stations throughout the state of NSW. Powering these 88 sites with renewable energy is a step towards BP’s greater ambition of becoming a net zero company by 2050 or sooner.

Adam Pegg, Country Manager, Lightsource BP – Australia, said: “We are delighted to be able to leverage our existing relationship with Snowy Hydro on our solar farm in Wellington, to sign this PPA with our West Wyalong project.

“Being able to facilitate powering BP’s service stations in NSW with renewable electricity from our West Wyalong solar farm is an achievement which demonstrates our commitment to provide sustainable and affordable energy to our communities.”

62 April/May 2021 | C&I | www.c-store.com.au

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Paul's

s'more Please

Josh's

Banoffee Choc Top

Chloe's

welcome to the crumble

Trust Paul to make a complex thing niiiice and simple. Alongside teaching kids to code, he’s also managed to turn a toasty choc-mallow campfire treat into a delicious drink. How’s that for programming HUNGRYTHIRSTY away?

Josh the roofer is no stranger to heights ~ no wonder he loves a choc top.

Mixing bold banana & cheeky toffee, Josh gutters HUNGRYTHIRSTY & keeps laughing. Bittersweet? Legit.

Chloe loves this bangin’ retro flavour as much as she loves to belt out an ‘80s banger. Crisp apple & toasty, golden crumble is gonna bring HUNGRYTHIRSTY to its n-n-n-n-n-knees.

PAUL’S S’MORE PLEASE

JOSH’S BANOFFEE CHOC TOP

CHLOE’S WELCOME TO THE CRUMBLE

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SEE OAKFLAVOURGENERATOR.COM.AU FOR MORE INFO AND FULL TERMS & CONDITIONS.

FOR MORE INFORMATION PLEASE CONTACT YOUR LACTALIS AUSTRALIA PTY LTD REPRESENTATIVE Lactalis Australia Pty Ltd 35 Boundary Street, South Brisbane QLD 4101 PHONE: 1800 000 257 FAX: 1800 335 188 EMAIL: sales@au.lactalis.com

PETROL NEWS

Petrol prices stabilise in Australia’s five largest cities Petrol prices in Australia’s five largest cities stabilised at the end of 2020 after an unpredictable year and petrol sales volumes continued to recover from their earlier pandemic-driven slump.

The ACCC’s latest petrol monitoring report shows the average retail price for petrol in the December quarter 2020 across Sydney, Melbourne, Brisbane, Adelaide and Perth was 121.4 cents per litre (cpl), a decrease of only 0.7 cpl from the previous quarter.

Of the five capital cities, Adelaide had the largest decrease in the average retail price (7.0 cpl) in the December quarter, and Sydney had the largest increase (3.4 cpl).

Petrol sales volumes across Australia picked up in the December quarter and were on average six per cent lower than average sale volumes in 2019, compared with 28 per cent lower in the June quarter and 17 per cent lower in the September quarter.

In the December quarter 2020, average petrol prices in regional Australia remained lower than average prices in the five largest cities. Average prices across 190 regional locations were 119.5 cpl, which was 1.9 cpl lower than average prices in the five largest cities (121.4 cpl).

Average gross retail margins in the five largest cities fell slightly in the December quarter, after hitting record highs in the September quarter, but remained well above historical levels.

Gross indicative retail differences (GIRDs) are the difference between retail prices and terminal gate prices and are a broad indicator of gross retail margins. As GIRDs do not account for retail operating costs, they should not be interpreted as actual retail profits.

Average GIRDs in 2020, in inflation adjusted terms, across the five largest cities were 17.1 cpl, an increase of 4.4 cpl from calendar year 2019. This is the highest level on record in both nominal and inflation adjusted terms. The level of prices, costs and profits vary significantly between retail operations and not all retail petrol sites were achieving these gross margins.

The December quarter 2020 was the third successive quarter in which taxes accounted for a larger proportion of the total price of petrol than the refined petrol itself.

Mogas 95, which is the benchmark for refined regular unleaded petrol in the AsiaPacific region, and taxes together made up 78 per cent of the average price of petrol in the December quarter.

South Australia confirms the launch of real-time fuel price scheme As part of a real-time fuel price scheme, South Australian petrol retailers will be required to submit their petrol prices to an aggregator, with the data then available for app developers to use.

Motorists can then consult these apps to locate the cheapest fuel prices in their area, in a bid to help deliver some relief to the cost of living in South Australia.

The Marshall Liberal Government’s real-time fuel price scheme will run as a two-year trial and is expected to save motorists more than $3 million per year.

As part of the scheme, service stations are required to report any changes in petrol prices within half an hour or risk heavy fines.

Motorists are being encouraged to report service stations to Consumer and Business Services (CBS) if they notice that prices don’t match between the bowser and a fuel price app.

Attorney-General Vickie Chapman said: “This will give motorists purchasing power like never before.”

Service stations that fail to comply could face penalties ranging from a $550 expiation fee to a maximum penalty of $10,000.

Consumer and Business Services Commissioner Dini Soulio says his team will be closely monitoring retailers to ensure they are complying with the new laws.

“In the lead-up to the launch of this scheme, my staff worked closely with retailers to ensure they understand their responsibility,” Commissioner Soulio said.

“We have also commenced a tender process for a data validation service, to ensure accuracy and validity of fuel prices.”

64 April/May 2021 | C&I | www.c-store.com.au

PETROL NEWS

Because what’s inside matters!

Why does the inside surface matter?

Only Envirotanks have an internal mould cured surface that is smooth, and this provides the best possible environment for the storage of petroleum products.

The major benefit of an internal mould cured surface is that the surface cure occurs in an oxygen deficient atmosphere, a process that prevents pitting of the internal surface that is caused by oxidisation during the cure.

This provides superior corrosion resistance to all modern fuel types and added protection for the issues associated with Ethanol blended products.

In addition to corrosion resistance there are no rough or uneven surfaces to catch dirt, debris or to hang up moisture, which would create an environment for bacteria to flourish.

Any moisture or debris that may enter an Envirotank will move to the bottom six o’clock position of the tank making it easier to remove by normal maintenance processes.

Included in Envirotank’s proprietary manufacturing process, is a licensed and approved mandatory same resin and glass fibre system. This includes the whole tank, the inner and outer walls, structural ribs, manways and containment collars and sumps.

Envirotank provides a true 360-degree hydrostatic monitoring and secondary containment system featuring 100 per cent of the inner and outer surfaces and the structural ribs on all tanks produced, including all compartmented tanks.

No unmonitored ribs that may hide faults until it is too late. Now that’s true peace of mind, not just a throwaway line.

For more information visit: Envirotank.com.au.

100% of the Outer Wall Surface is Monitored and Visible for Inspection and Leak Testing Smooth Molded Surface

True Double-Wall Construction Means High Strength

Inner Tank Wall

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HydroGuard® Interstitial Monitoring Fluid

Ü Envirotank double-wall tanks are fully compatible with all modern fuel types including alcohol blends & low sulphur diesel.

Ü Double-Walled Envirotanks fully comply with the secondary containment requirements of AS 4897. This is in addition to the design meeting AS 1940 and UL 1316.

Because What’s Inside Matters!™

Ü Two (2) structural walls provide the ultimate in leak prevention.

Ü The Hydroguard® System is a

proven hydrostatic testing system, that continuously monitors the integrity of the inner & outer tank walls in all installed conditions.

Corrosion-proof Fibreglass Underground Storage Tanks

Visit www.envirotank.com.au or call 1800 818 354 for more information

h t i w d a o hit the r

T H G I R the F O E P TY Y G R E N E Glycaemic Index (GI) value = 40*